Potential Dem VP pick says he can't support US Steel-Nippon Steel merger
US Steel agreed to be bought by Japan's Nippon Steel for $14.9B
US Steel shareholders approve Nippon Steel takeover
FOX Business correspondent Lydia Hu has the latest on the deal they believe will make the steel industry stronger and more competitive on ‘The Bottom Line.’
Pennsylvania Gov. Josh Shapiro said Tuesday that he can't support Nippon Steel's pending acquisition of U.S. Steel because of opposition from the United Steelworkers union.
The Democratic governor, who is among the leading contenders to be chosen as Vice President Harris' running mate on the party's presidential ticket, said he is assessing the proposed merger through its potential impact on workers.
"Speaking from a state perspective as governor, if the U.S. steelworkers aren't happy with this deal, which they are not, I'm not happy with this deal," Shapiro said at an Internal Revenue Service event attended by Treasury Secretary Janet Yellen.
"If I don't see a future where U.S. Steel manufacturing continues here in the commonwealth of Pennsylvania, and is expanding from what is happening right now, I'm not happy, so I've got really serious concerns," Shapiro added.
NIPPON STEEL HIRES FORMER TRUMP OFFICIAL MIKE POMPEO TO ADVISE ON US STEEL ACQUISITION
Pennsylvania Gov. Josh Shapiro, who has emerged as a possible Democratic VP pick, expressed opposition to Nippon Steel's bid to buy U.S. Steel. (Lev Radin/Pacific Press/LightRocket via Getty Images)
Shapiro's opposition to the proposed $14.9 billion deal aligns him with President Biden, who announced this month that he would withdraw from the presidential race and cleared the way for Vice President Harris to replace him as the Democratic Party's nominee. Biden expressed his opposition to the deal in March.
On the other side of the aisle, former President Trump and his running mate, Sen. JD Vance, R-Ohio, have both criticized the deal, and Trump threatened to block the deal if elected.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| X | UNITED STATES STEEL CORP. | 38.01 | +2.18 | +6.08% |
| NPSCY | NIPPON STEEL CORP. | 7.17 | +0.60 | +9.09% |
U.S. Steel and Nippon Steel have sought to assuage concerns raised by the proposed deal's detractors, including labor unions and politicians from both major parties who are worried about protecting domestic industries and enforcing trade laws.
US STEEL SHAREHOLDERS VOTE ON CONTROVERSIAL NIPPON DEAL
Nippon Steel's $15 billion bid to buy U.S. Steel has encountered political and regulatory resistance. (Justin Merriman/Bloomberg via Getty Images)
Nippon Steel pledged to preserve U.S. Steel's name, brand and headquarters in the deal, adding when it announced the deal in December that it would honor all the steelmaker's collective bargaining agreements with unions. The company said in March its acquisition of U.S. Steel wouldn't cause layoffs or plant closures as a result of the transaction.
"We remain committed to the transaction with Nippon Steel, which is the best deal for our employees, shareholders, communities, and customers," U.S. Steel told FOX Business in a statement on Tuesday. "The partnership with Nippon Steel, a long-standing investor in the United States from our close ally Japan, will strengthen the American steel industry, American jobs, and American supply chains, and enhance the U.S. steel industry's competitiveness and resilience against China."
"In Pennsylvania alone, U.S. Steel employs nearly four thousand hard working men and women — this is the best deal for them and the communities where they live. We look forward to continued conversations," the company added.
BIDEN VOICES OPPOSITION TO US STEEL'S SALE TO JAPANESE FIRM
Nippon Steel told FOX Business in a statement that the company has "deep respect for U.S. Steel's Pennsylvania roots, and our merger will not only protect but grow its presence in the commonwealth. Our long-term success depends on keeping existing jobs, creating new jobs, and making major investments — a blueprint we have successfully executed over the 13 years we have owned and operated Standard Steel in Burnham, Pennsylvania."
"We have provided significant commitments to the USW above and beyond what exists in their current agreement and are confident that we can reach a mutually beneficial resolution," Nippon Steel added.
U.S. Steel shareholders voted to approve the firm's acquisition by Nippon Steel in a 98% vote. (Justin Merriman/Bloomberg via Getty Images)
The transaction was approved on a 98% vote by U.S. Steel shareholders in April. Nippon recently pushed back the expected closing date for the deal from September to December in response to a Justice Department request amid its antitrust probe of the deal, though the company said it still expects the merger to ultimately proceed.
The Japanese firm recently hired Mike Pompeo, who served as secretary of state and CIA director during the Trump administration, to advise the firm on the acquisition of U.S. Steel.
Former Secretary of State Mike Pompeo, who also served as former President Trump's CIA director, was recently hired by Nippon Steel to advise on the acquisition of U.S. Steel. (Leon Neal/Getty Images)
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The company provided FOX Business with a statement on behalf of Pompeo after the announcement: "As bad actors around the world seek to destabilize America's economic might, we must take decisive steps to expand our manufacturing base in partnership with our closest allies. I'm proud to be working on behalf of a deal that provides the best path forward to not only revitalize an iconic American company, but also to strengthen American supply chains and protect American jobs."
Reuters contributed to this report.