President Donald Trump should rethink his opposition to a US Steel merger with Nippon Steel and for more than one good reason.
First, there are strong financial incentives.
The Japanese steelmaker is offering to invest $7 billion to upgrade US Steel production facilities. $1 billion of that money would bring facilities in the Mon Valley up to date. Better technology and efficiency will help US Steel compete with China in a tough international market. The merger would also save local union jobs and boost the Mon Valley economy.
The president has objected to the merger over national security concerns, but how the deal is a threat is a mystery to reasonable observers.
Nippon Steel already operates eight production facilities in the US and promises to move its headquarters from Houston to Pittsburgh.
Now, there's a compelling environmental motivation for giving the deal a green light. Upgraded production facilities will significantly reduce carbon emissions and improve the area’s air quality.
This merger is now a win-win-win deal.