On Friday, Japan’s largest steelmaker, Nippon Steel, defended its proposed $14 billion acquisition of U.S. Steel as a move to bolster American supply chains and economic defenses against China, despite President Joe Biden’s opposition to the deal.
Nippon Steel emphasized its commitment to completing the acquisition, citing its intention to enhance American priorities by leveraging financial investment and advanced technologies to drive quality and competitiveness for customers in critical industries reliant on American steel. The company asserted that no other U.S. steel company could adequately meet this challenge while also satisfying antitrust requirements.
Addressing concerns about potential layoffs and plant closures, Nippon Steel assured that its proposal would not lead to such outcomes.
Biden, however, expressed his stance against the acquisition, emphasizing the importance of maintaining strong American steel companies led by American steelworkers. He reiterated his support for American steelworkers, affirming his commitment to their interests.
In response to President Biden’s remarks opposing the acquisition of U.S. Steel by Nippon Steel, the United Steelworkers union expressed support for his stance, highlighting the importance of maintaining American ownership in critical industries.
David McCall, the president of United Steelworkers International, emphasized the vulnerability that foreign ownership could pose to meeting defense and critical infrastructure needs.
Japanese Chief Cabinet Secretary Yoshimasa Hayashi refrained from commenting on individual company management matters but underscored the strength of the U.S.-Japan alliance. He emphasized the commitment of both countries to collaborating closely for sustainable economic growth in the Indo-Pacific region and maintaining a free and open economic order.