Japanese steel giant Nippon Steel on Wednesday described political opposition to the purchase of US rival US Steel as inappropriate, following news of a potential blockade of the acquisition by President Joe Biden.
“This transaction will support U.S. economic security to the combat the threat represented by China. It is inappropriate for politics to continue to prevail over true national security interests [dos EUA]”, said Nippon Steel, in a statement to the France-Presse news agency.
Biden has repeatedly expressed opposition to the acquisition of US Steel by Nippon Steel, announced in December 2023, for 14.9 billion dollars (14.2 billion euros).
“The position [de Biden] from the beginning is that It is essential that US Steel is owned and operated by Americans“, replied Robyn Patterson, White House spokeswoman.
“The President is waiting to see what comes out of CFIUS”the Commission on Foreign Investment in the United States, where the analysis of the process “is still ongoing”, insisted.
The commission’s mission is to study plans for the acquisition of any U.S. entity by a foreign investor to identify possible implications for U.S. national security.
According to sources cited by financial news agency Bloomberg, Biden intends to formally block the operation for national security reasons before leaving office in January.
The US president is expected to veto the acquisition, after receiving recommendations from CFIUS, expected “on December 22 or 23”, Bloomberg added.
“Nippon Steel maintains confidence in North American justice (…) and, if necessary, will work with US Steel to take all measures to reach a fair conclusion”, highlighted the Japanese steel company.
This morning (local time), Japanese government spokesman Yoshimasa Hayashi said that “strengthening Japan-US economic ties, including expanding mutual investment, and achieving sustainable economic growth in the Indo-Pacific and the cooperation in economic security are inseparable“.
Last week, the president-elect, the Republican Donald Trump stated that he was prepared to block a acquisition.
“I am totally against US Steel, once great and powerful, being bought by a foreign company, in this case the Japanese Nippon Steel”, wrote the Republican on his Truth Social network.
“Through a series of tax incentives and tariffs, we will return US Steel to greatness and strength, and it will happen quickly! As president, I will block this deal“, added Trump, who will succeed Democrat Joe Biden on January 20.
Source: https://observador.pt/2024/12/11/japonesa-nippon-steel-critica-oposicao-politica-nos-eua-a-aquisicao-da-us-steel/
