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Japanese takeover could spell long-term decline of U.S. Steel, union chief says
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Japanese takeover could spell long-term decline of U.S. Steel, union chief says
Dec 10, 2024 12:33 AM

*

Head of union opposing U.S. Steel sale unconvinced of

long-term

viability

*

Fears Nippon will import steel into U.S. from

international

mills

*

Nippon trying to close deal before Donald Trump takes

office

By John Geddie

Dec 10 (Reuters) - The head of a powerful labour union

opposing U.S. Steel's sale to Japan's Nippon Steel ( NISTF )

said he has not received assurances that the would-be

owners are committed to ensuring the lasting success of the

strategic U.S. firm.

Nippon Steel's ( NISTF ) $15 billion takeover bid has been criticised

by both President Joe Biden and President-elect Donald Trump and

is subject to a national security review later this month by the

secretive government panel CFIUS.

David McCall, the head of the United Steelworkers union,

spoke to Reuters on Monday as Nippon Steel ( NISTF ) published details of

the various commitments it has made to get the union's backing

including on job security and investments in facilities.

One of McCall's top concerns is that Nippon may import steel

into the U.S. from its international mills, a move he worries

would erode a company that helped build the Empire State

Building and arm allied forces in World War Two.

"When we've had discussions with them there's been nothing

that would assure us that there's a long-term viability in the

operations," McCall told Reuters via video call from his office

in Pittsburgh, Pennsylvania.

"They (Nippon Steel ( NISTF )) want a return on that investment and I

understand that but it can't be harvesting our facilities and

letting them slowly but surely over a period of time deteriorate

so that they can then bring product in from their other

facilities around the world and have access to our market."

Nippon Steel ( NISTF ) has previously denied it will import steel from

its international mills after it seals the deal and repeatedly

said it aims to become an "insider" in the U.S., a market

critical to its future growth.

Nippon Steel ( NISTF ) and U.S. Steel did not immediately respond to a

request for comment for this article.

McCall also criticised the Japanese suitors for not trying

to stop or intervene in what he called "bullying" from U.S.

Steel CEO David Burritt to close the deal.

Burritt told the Wall Street Journal in September that the

firm would close steel mills and likely move its headquarters

out of Pittsburgh if the sale failed.

"He's like a schoolyard bully demanding your lunch money,"

he said of Burritt, adding the threats had "scared the hell" out

of some of his members.

Nippon Steel ( NISTF ) is racing to close the deal before Trump - who

has vowed to block the transaction - takes office on Jan. 20.

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