WASHINGTON, May 14 (Reuters) - Nippon Steel's ( NISTF )
deal to buy U.S. Steel has "zero chance" of winning
government approval amid continued opposition from the United
Steel Workers union and "needs to be unraveled," the CEO of
rival suitor Cleveland-Cliffs ( CLF ) said on Tuesday.
Lourenco Goncalves told reporters at the American Iron and
Steel Institute's annual meeting that his bid had the full
support of the U.S. government, President Joe Biden, a Democrat
who wants U.S. Steel to remain American owned, and Republican
presidential candidate Donald Trump.
"It would be a silly movement to wait for the election in
the hopes that a different outcome would be allowed to them,
because I also have support from President Trump - personal
support from President Trump," Goncalves said.
Japan's Nippon Steel ( NISTF ) is pursuing a nearly $15 billion cash
deal to buy the iconic 123-year-old U.S. Steel, despite
resistance from Biden, the union and many members of Congress
while a U.S. national security review is conducted.
Cleveland-Cliffs ( CLF ) put U.S. Steel in play last August with an
unsolicited $7.3 billion bid, but Goncalves has said he would
consider a lower offer if the Nippon deal is scuttled.
Goncalves on Tuesday likened the transaction to a patient on
life support.
"We're waiting for an end. It's like a sick patient that
sits on a bed with a bunch of tubes and sensors around him. He
is still alive but for what?" Goncalves added.
U.S. Steel has argued that its labor agreement with the
United Steel Workers does not give the union a right to veto the
transaction. A U.S. Steel spokesperson could not immediately be
reached for comment on Goncalves' latest remarks.
Nippon Steel ( NISTF ) has said it is confident of completing the
acquisition of U.S. Steel, despite the opposition it has faced
from the union and politicians.