Japan Steel's 'US Steel Acquisition' Faces Opposition from US Political Circles and Labor Unions

Letter Urging Janet Yellen, CFIUS Chair, to Halt by Republican Lawmakers
Democrats Also Say "Harm to Workers' National Interest"
Labor Groups Express Strong Opposition

The plan of Nippon Steel, the world's fourth-largest steelmaker, to acquire US Steel, one of the top three steel companies in the United States, has faced strong opposition from the U.S. political sphere and labor unions.

US Steel Edgar Thomson Plant in Pennsylvania, USA. US Steel, once a leading company in the global steel market and a symbol of American industrialization, announced on the 18th (local time) that Nippon Steel will acquire it for $14.1 billion (approximately 18.3 trillion KRW). Pennsylvania=AP Yonhap News

According to major foreign media on the 19th (local time), three Republican senators?J.D. Vance, Marco Rubio, and Josh Hawley?sent a letter to Treasury Secretary Janet Yellen, chair of the Committee on Foreign Investment in the United States (CFIUS), urging the suspension of the acquisition.

They pointed out that Nippon Steel has historically been loyal to the Japanese government and has a record of dumping steel products in the U.S., stating, "The acquisition of US Steel by Nippon Steel, which has a serious precedent, must be blocked."

CFIUS, under the Treasury Department, can block foreign investments or mergers and acquisitions if it determines that such transactions negatively impact national security. Accordingly, if it is judged that Nippon Steel's acquisition plan adversely affects U.S. national interests, CFIUS can recommend disallowing the deal.

Strong opposition has also arisen within Pennsylvania, the home state of US Steel, regarding this acquisition. Democratic lawmakers from Pennsylvania voiced concerns that if US Steel is absorbed by Nippon Steel, it could jeopardize the livelihoods of workers in Pennsylvania's key industries and the steel sector.

Democratic Senator John Fetterman of Pennsylvania said, "This deal will have a negative impact on both workers and Pennsylvania," and pledged to use all means to block the negotiation. Democratic Senator Bob Casey also emphasized, "Major American steel companies must remain American-owned."

The labor sector strongly opposed the acquisition, claiming that Nippon Steel pushed forward without prior notice to the unions. David McCall, president of the United Steelworkers (USW), said, "We do not know Japan," adding, "The deal will not go through, and we are pressuring regulators to investigate what benefits this transaction would bring to American workers and national security." USW has supported US Steel's acquisition of Cleveland-Cliffs, a U.S. steel manufacturer, citing the protection of American steelworkers' rights and the nation's key industries.

Earlier, Nippon Steel announced it would acquire US Steel for $14.1 billion. Headquartered in Pittsburgh, Pennsylvania, US Steel was founded in 1901 when John Pierpont Morgan purchased Carnegie Steel from the "Steel King" Andrew Carnegie, making it a company with a 122-year history.

Once the world's largest steel company and the first to surpass a corporate value of $1 billion, US Steel suffered significant setbacks due to the end of wartime demand, the Great Depression, and economic recessions, leading to intense restructuring and a rapid decline in its business scale.

This content was produced with the assistance of AI translation services.