President Joe Biden claimed to be defending excellent jobs in the American heartland by preventing a Japanese corporation from acquiring US Steel. Instead, he might be endangering them. Nippon Steel pledged to invest $2.7 billion on US Steel’s outdated blast furnace operations in Gary, Indiana, and Pennsylvania’s Mon Valley as part of its almost $15 billion bid for the venerable Pittsburgh-based steelmaker.
Additionally, it pledged to obtain US government approval before reducing production capacity in the US for the following ten years. Jason Zugai, an operational technician and vice president of the United Steelworkers union local at a US Steel facility in the Mon Valley, stated, “They were going to invest in the Valley.
Gordon Johnson, the founder of GLJ Research and a Wall Street stock watcher of US Steel, stated that losing the Nippon-U.S. Steel transaction “will be a disaster for Pennsylvania.” “I’m not sure I understand. The workers have no interest in this. The interests of US Steel’s shareholders are not served by it. Because “a strong domestically owned and operated steel industry represents an essential national security priority. Without domestic steel production and domestic steel workers, our nation is less strong and less secure,” Biden announced on Friday that he was halting the Nippon takeover, following a stalemate among federal regulators over its approval. Following the news on Friday, US Steel’s stock fell 6.5 percent.
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