financetom
Business
financetom
/
Business
/
Japanese takeover could spell long-term decline of U.S. Steel, union chief says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Japanese takeover could spell long-term decline of U.S. Steel, union chief says
Dec 10, 2024 12:34 AM

(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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved