*
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
(Adds White House comments and U.S. Steel share price moves in
paragraph 3, U.S. Steel comment in paragraph 12)
By John Geddie
Dec 11 (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 by the secretive
government panel CFIUS which is due later this month.
The White House on Tuesday said Biden will wait for the
outcome of the review before deciding on whether to block it
after U.S. Steel's shares tumbled on a report suggesting he was
poised to kill the deal.
David McCall, the head of the United Steelworkers union,
told Reuters on Monday that one his 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 use the deal as
cover to import steel and has made a series of pledges to
protect jobs and invest in U.S. facilities it sees as key to its
future growth.
Nippon Steel ( NISTF ) declined to comment further on McCall's
comments.
The union leader 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.
In emailed comments, U.S. Steel said the Japanese bid was
the "only realistic transaction" and one that would increase
investment in blast furnace facilities.
Nippon Steel ( NISTF ) is racing to close the deal before Trump - who
has vowed to block the transaction - takes office on Jan. 20.