President-elect Donald Trump has said that he will stop the $14.9 billion takeover of US Steel by Japan’s Nippon Steel almost a year after the deal was announced.
The purchase of US Steel has been under review for its potential impact on US national Security, but now Trump has said that once he’s in office, he will stop the deal from going through.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote on Truth Social. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!”
He went on to say that while he is president, he will “block this deal from happening.”
The remarks on social media echo the same sentiment that Trump shared on the campaign trail when discussing Nippon’s bid to buy US Steel.
The Committee on Foreign Investments in the United States is currently examining the deal to determine if there is any threat to the United States. The committee is a government panel that assesses foreign acquisitions of US companies.
President Biden extended the review in September and said he is prepared to block the deal from going through.
Responding to Trump’s comments, Nippon Steel said it was “determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply chain resiliency and US national security.”
“We will invest no less than $2.7 billion into its unionized facilities, introduce our world-class technological innovation, and secure union jobs so that American steelworkers at U.S. Steel can manufacture the most advanced steel products for American customers,” the Japanese firm said in a statement.
The deal would see US Steel, founded in 1901 by Andrew Carnegie, J.P. Morgan, and Charles Schwab, keep its name and headquarters in Pittsburgh. It would also honor all collective bargaining agreements with the United Steelworkers union.
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If the deal falls through, the company has warned it might have to close some of its blast furnace facilities, meaning thousands of jobs could be lost.
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