US Steel Bought With Foreign Dollars: ‘It’s Absolutely Outrageous’

Japan’s Nippon Steel has agreed to buy US Steel Corp for $14.1 billion, sparking criticism over foreign ownership in a key US industry.

The deal represents a 40% premium on US Steel’s closing price and includes assuming the US firm’s debt, totaling $14.9 billion.

While the market responded positively, the United Steelworkers union and US Senator John Fetterman have criticized the deal.

USW International President David McCall said the deal exposes “the same greedy, shortsighted attitude that has guided US Steel for far too long.”

Neither company “reached out to our union regarding the deal, which is in itself a violation of our partnership agreement that requires US Steel to notify us of a change in control or business conditions,” he added.

“It’s absolutely outrageous that they have sold themselves to a foreign nation, and a company,” Sen. John Fetterman said.

“Steel is always about security as well,” he added.

“I’m going to fight for the steelworkers and their union way of life here.”

Nippon Steel stated it would honor collective bargaining agreements with USW and aims to expand its production in the US.

“We are excited that this transaction brings together two companies with world-leading technologies and manufacturing capabilities, demonstrating our mission to serve customers worldwide,” Nippon Steel President Eiji Hashimoto stated.

He emphasized the firm’s “commitment to building a more environmentally friendly society through the decarbonization of steel.”

The acquisition is expected to enhance decarbonization efforts and provide innovative steel solutions.

Both boards have unanimously approved the deal, subject to US Steel shareholders’ approval.

“Today’s announcement also benefits the United States — ensuring a competitive, domestic steel industry, while strengthening our presence globally,” US Steel President and CEO David Burritt said.

“Our shared decarbonization focus is expected to enhance and accelerate our ability to provide customers with innovative steel solutions to meet sustainability goals,” he added.