AFL-CIO’s Post

Will US Steel Takover happen? With all the deals the DOJ blocked for monopolistic concern, surprised the US Steel acquisition will be permitted for national security concerns with two global conflicts ongoing and a third predicted any day. Maybe this Union boss ends up helping scuttle the deal another way. #takeovers #steel #nationalsecurity

Bloomberg:Cliffs CEO Blasts US #Steel Deal for Lacking Union Support -Goncalves reiterates Cleveland-Cliffs option is 100% off table -#Cliffs shares fall after earnings missed analysts’ estimates Cleveland-Cliffs Inc.’s top executives don’t see any takeover of United States Steel Corp. going ahead without the full support of the United Steelworkers union (#USW). Chief Executive Officer Lourenco Goncalves and his financial chief extended criticisms of #Nippon Steel Corp.’s $14.1 billion takeover during the company’s first-quarter earnings call on Tuesday, four months after Cliffs lost its bid to buy US Steel to the Japanese #steelmaker. “It still baffles me to this day that the clueless individuals representing Nippon Steel in this embarrassing event felt that they could do this without union support,” he said. “You just cannot do it with a USW-represented workforce.” The CEO also said he believes the Biden administration “has different ways to terminate the Nippon transaction, and we believe that will be done sooner rather than later.” Goncalves reiterated that Cliffs is no longer interested in buying the iconic American steelmaker, adding that the “option is totally, 100% off the table.” The White House declined to comment on the CEO’s remarks. Nippon Steel agreed to buy US Steel in December, but opposition from the USW and President Joe Biden has left investors uncertain of the deal’s fate. The transaction is subject to a national security review that’s unlikely to conclude until late this year. Continue reading: https://lnkd.in/gu7vp8Rp

Unveiling a Crucial Decision: Biden's Dilemma in the Steel Industry 🏭 The New York Times President Biden is facing a challenging decision as he balances his commitment to revitalizing American industry with international alliances. The proposed $14.1 billion takeover bid of U.S. Steel by Japan's Nippon Steel has put the spotlight on the importance of domestic steel production. Pressure from both parties, including senators from Ohio and Pennsylvania, urges caution on national security grounds. U.S. Steel executives argue for the benefits of the deal, promising to maintain jobs and headquarters in Pittsburgh. This decision could shape the future of the American steel industry and test the administration's dedication to high-paying union manufacturing jobs. #SteelIndustry #ManufacturingJobs #BidenAdministration #NationalSecurity https://lnkd.in/gDFRxFse

In a decisive move, President Joe Biden is set to announce his opposition to the acquisition of U.S. Steel Corp by Japan's Nippon Steel. The President emphasizes the importance of keeping the iconic American steelmaker domestically owned and operated. This stance comes ahead of a key summit with Japan's Prime Minister, underscoring the delicate balance between economic interests and national security. U.S. Steel's stock dipped ahead of the announcement, reflecting market uncertainty. The deal, which had been seen as a strategic play in the wake of Biden's infrastructure bill, now faces bipartisan scrutiny in Congress. Biden's statement signals a firm commitment to maintaining the integrity of critical American industries.#Cyprus, #United States, #Japan

In the Pittsburgh Post-Gazette, Paul Sracic and I put the USW's actions and its obligations to its members in the spotlight. The best ways for the USW to support their members in the heavily unionized blast furnace steel plants in United States Steel Corporation are to: 1) not put all their faith in Cleveland-Cliffs, but to return to the negotiation table with Nippon Steel Corporation and secure iron-clad guarantees 2) recognize that Nippon Steel will bring technology and investments that ensure the long-term viability of unionized blast furnance steel; a sale to Cleveland-Cliffs will trigger antitrust action, dissolution, possible job losses, and continued lack of investment.

Japanese steelmaker Nippon Steel intends to complete the acquisition of US Steel despite the fact that US President Joe Biden has expressed a desire to keep the latter in American ownership. According to a statement released by the Japanese company, the deal will bring clear benefits to US. Steel, labor unions, the US steel industry as a whole and US national security. In addition, Nippon Steel noted that the acquisition will strengthen American supply chains and economic protection from China. Nippon Steel said that no other American steel company can do this task on its own while complying with antitrust requirements, and that they are the right partner to ensure US Steel’s success for generations to come as an iconic American company. «We are moving forward with the regulatory review process, including CFIUS, and have confidence in the rule of law, objectivity and due process we expect from the US government. We are determined to follow through and complete the transaction,» the statement said. The Japanese steelmaker announced that it has committed to the United Steelworkers (USW), which opposes the deal, that there will be no layoffs or plant closures until September 2026 under certain conditions. Nippon Steel also promised that it would invest an additional $1.4 billion after the deal is finalized, increasing the current collective bargaining agreement by more than 140%. Read more here🔽 #GMKCenter #Ukraine #steelmakers #steel #USA #Japan

The backlash against the takeover of US Steel by Japan's largest steelmaker is growing -- and it's bipartisan. Yes, this $14.1 billion deal will draw tough scrutiny on national security grounds. And yes this is happening just before the 2024 election. But an outright rejection seems unlikely at this point for a few key reasons. More with Isa Soares on Quest Means Business.

In The Wall Street Journal, my op-ed, "Biden’s Foolish Snub of Nippon Steel" criticizes protectionist opposition to the Nippon Steel Corporation/U.S. Steel deal, and the Biden administration's willingness to indulge them. Rather than threatening unions and national security, the deal protects consumers, enhances US economic security, and provides an opportunity for greater US-Japanese trade and economic cooperation. The WSJ link isn't sharing on LinkedIn, but read it here: https://lnkd.in/ePm_M6vZ

It is a US Presidential election year, one that seems may be as close and divisive at this point as the last one, so one can discard a lot of the usual analysis about why the closest partner to the US in the entire Indo-Pacific region when it comes to national security priorities, is called "foreign" and, therefore, to be suspect for an acquisition in the great state of Pennsylvania when Japan steel workers have far more stability than the US union members. Politics for sure, but nothing that truly impacts the union workers in those plants in the US who see more clearly than the politicians. Not the first time. https://lnkd.in/guCt8eri

𝗡𝗶𝗽𝗽𝗼𝗻 𝗦𝘁𝗲𝗲𝗹 𝗲𝘅𝗲𝗰 𝘁𝗼 𝗺𝗲𝗲𝘁 𝗨𝗦𝗪 𝗵𝗲𝗮𝗱 𝘁𝗼 𝘀𝗲𝗲𝗸 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝗳𝗼𝗿 𝗨.𝗦. 𝗦𝘁𝗲𝗲𝗹 𝗱𝗲𝗮𝗹 by Yuka Obayashi, Ritsuko Shimizu; Reuters via The Japan Times   A senior Nippon Steel Corporation executive said he would meet the United Steelworkers (USW) union chief this month to seek support for acquiring United States Steel Corporation, expressing confidence the deal can be finalized by the end of September.   Gaining their backing could help the world's fourth-largest #steelmaker carry the $14.9 billion purchase of its U.S. rival over the line. The #merger has drawn #criticism from some #Democratic and #Republican #lawmakers who worry about the #nationalsecurity implications of the takeover — even though the #US and #Japan are close allies — and the powerful #USW, who worry how their #workers could fare under #NipponSteel's management. "I think we've cleared the contractual issues," Executive Vice President Takahiro Mori said in an interview on Wednesday, emphasizing Nippon Steel's plan to uphold all of the current #agreements between the #union and #USSteel. For #Japan, the biggest foreign #investor in the #UnitedStates, a collapse of the deal could give companies pause about #acquisitions in other #strategic #sectors and force them to be more risk averse when sizing up deals, say former #officials, #lawyers, #analysts and #executives. The full article is here: https://lnkd.in/d-EPJT8T