Vice President Kamala Harris will publicly oppose Nippon Steel’s proposed acquisition of US Steel. This move has caused significant controversy.
Harris, who will be making her first public statement on this issue, will express her concern over the $14 billion offer by Japan’s biggest steelmaker during her campaign stop on Monday in Pittsburgh.
The acquisition of this company has raised concerns due to the possible foreign control over a major American industry. This has prompted reviews by several US government agencies, including the Justice Department, and the Committee on Foreign Investment in the United States.
Harris’s position demonstrates the commitment of the Obama administration to protect American workers and maintain domestic control over vital industries.
“Commitment to always having the backs” of American steelworkers
Harris’s visit, which will take place in Pittsburgh (also known as “Steel City”), is expected to be a focus of her unwavering commitment to American steelworkers.
She will likely stress her “commitment” to always having the backs and American steelworkers, reinforcing White House’s increasing opposition to the Nippon Steel Deal.
Joe Biden, the president of the United States, had expressed concern about the takeover and stressed the importance for strong American steel companies to be driven by American workers.
Harris’s comments could solidify the administration stance, as the proposal is scrutinized for antitrust concerns and national security threats.
Biden Administration’s position on US manufacturing
The upcoming remarks of Vice President Harris are in line President Biden’s position regarding maintaining domestic control on critical industries such as steel.
Biden has always emphasized that it is important to maintain key American industries in the hands of domestic owners to ensure economic stability.
During a recent meeting, the position of his administration was reiterated with Japanese Prime Minister Fumio Kishhida. The implications of the Nippon Steel agreement were also discussed.
Japan’s response towards US concerns
Fumio Kishida, the Japanese Prime Minister, expressed his concerns over US political influence on the proposed acquisition. He stated that Japan believed “appropriate legal procedures” were being followed by the US Government.
Biden did not specify any specific steps the administration would take to stop the deal, even though he expressed his support for American workers as well as international allies. This response shows the delicate diplomatic balance that the US is trying to achieve between protecting domestic industries and maintaining international relationships.
The acquisition of Nippon Steel by Nippon Steel is likely to face significant regulatory challenges in the US.
CFIUS and the Justice Department will both evaluate whether there are any antitrust violations in the transaction, while CFIUS will also assess potential national security threats.
CFIUS, which is made up of members of President Biden’s cabinet, such as the Secretaries of Treasury, Commerce, Defense, and Homeland Security, has a vital role to play in determining how foreign takeovers will affect American companies.
Harris’s opposition to the deal could have an impact on these reviews.
The future of US Steel is uncertain as regulatory bodies continue to review the Nippon Steel offer.
Nippon Steel pledged $1.3 billion more to modernize the two mills that are aging in Pennsylvania and Indiana. They also committed to keeping US Steel’s name and headquarters at Pittsburgh.
However, neither US Steel or Nippon Steel have publicly commented on any discussion with Harris about the matter.
Her vocal opposition may add pressure to CFIUS and Justice Department, causing them to block this deal. This could influence the outcome of the contentious acquisition.
The ICD published the following article: Harris opposes Japanese takeover of US Steel and advocates for domestic ownership.
