Rain of criticism after the sale of US Steel to the largest Japanese steel producer
The unions and Senator Fetterman regret the sale of the company to a foreign country and call to block the operation, which is valued at $14.9 billion.
The Japanese Nippon Steel Corporation (NSC) has reached an agreement to buy US Steel Corporation for 14.1 billion dollars. As the most important steel company in Japan, NSC will also assume the debt of the American company, raising the total value of the transaction to 14.9 billion dollars. The agreement has drawn criticism from unions, and even Senator John Fetterman announced that he will do "everything I can to block it."
A $14.9 billion operation
The board of directors of both companies approved the agreement and announced it through a statement on their respective websites, detailing the price that the Japanese steel company will pay for each share in cash.
86 million tons of steel per year
In the words of the president of the Japanese entity, Eiji Hashimoto, the deal will allow his company to reach the production of 86 million tons of steel annually, and consolidate the group as one of the great leaders in the sector throughout the world and contribute to the decarbonization of the steel. Hashimoto also promised to respect current union contracts:
Advance in more ecological steel production
For his part, the president and CEO of US Steel, David B. Burritt, highlighted the strength of the Japanese company and assured that its clients will benefit from the operation. In addition, he insisted on the importance of the purchase to advance the more ecological production of steel:
Unions denounce US Steel's 'greedy, shortsighted attitude'
A reading with which the unions of the American firm do not agree. In fact, in a press release issued by the United Steelworkers Union, the president of the union, David McCall begins by asserting that "to say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy, shortsighted attitude that has guided U.S. Steel for far too long." In addition, the union was very critical of the sale of a company that is fundamental to the American economy to a foreign company.
McCall, furthermore, denounced that "neither U.S. Steel nor Nippon reached out to our union regarding the deal, which is in itself a violation of our partnership agreement that requires U.S. Steel to notify us of a change in control or business conditions."
Fetterman will do "everything possible to block him"
Also expressing his discontent with the operation was John Fetterman, senator from Pennsylvania, a state with a significant number of steel plants. In a video published on X (formerly known as Twitter), the legislator even assures that he will do everything possible to block the agreement. "It is absolutely outrageous that they have been sold to a foreign nation, and to a company. The steel industry also always has to do with safety. "I'm going to fight for the steelworkers and their union way of life here."
After learning of the deal, US Steel Corporation's stock market value skyrocketed, sending its shares up more than 26% on Wall Street.