04:38 PM EDT, 06/04/2024 (MT Newswires) -- United States Steel ( X ) unionized workers could be facing a "nightmare" scenario if a political decision to block Nippon Steel's acquisition leaves it open for takeover by an American rival, Semafor reported Tuesday, citing a Nippon executive.

An takeover within the US would end up trimming the company down, Takahiro Mori vice chairman of Nippon Steel told the news outlet. China is the biggest risk to the steel industry and a leaner US Steel under the US and Japanese control will be more competitive.

"Business is business and politics is politics, and Japan's government is watching this deal," the report quoted Mori as saying.

Neither US Steel nor Nippon Steel immediately responded to MT Newswires' requests for comment.

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