Three Republican senators oppose Nippon-U.S. Steel deal over national security
Reuters
Published Dec 19, 2023 12:09PM ET
Updated Dec 19, 2023 06:22PM ET
WASHINGTON (Reuters) -Three U.S. Republican senators on Tuesday urged Treasury Secretary Janet Yellen to block the $14.9 billion acquisition of U.S. Steel by Japan's Nippon Steel, the world's fourth largest steelmaker, citing national security concerns.
Nippon clinched a deal on Monday to buy Pittsburgh-based U.S. Steel for $14.9 billion in cash, prevailing in an auction for the 122-year-old iconic steelmaker over rivals such as Cleveland-Cliffs (NYSE:CLF), ArcelorMittal (NYSE:MT) and Nucor (NYSE:NUE).
"Despite the absence of any security-focused deliberation on U.S. Steel's part, domestic steel production is vital to U.S. national security," according to the letter on Tuesday from Republican Senators JD (NASDAQ:JD) Vance, Josh Hawley and Marco Rubio.
Yellen chairs the Committee on Foreign Investment in the United States (CFIUS), a panel that scrutinizes deals for potential national security risks, which is expected to review the transaction.
No comment was immediately available from the Treasury Department.
White House spokesperson Karine Jean-Pierre told reporters at a regulaor White House briefing that there could be a regulatory review of the deal, but gave no further details.
At least four Democratic senators, Sherrod Brown, John Fetterman, Bob Casey and Joe Manchin, have also expressed opposition to the deal, as have two Democratic members of the House of Representatives from Pennsylvania.
Casey, Fetterman and representatives Chris Deluzio and Summer Lee wrote to Nippon Steel President Eiji Hashimoto on Tuesday to express their "deep concern" about the failure of the two firms to consult or notify the United Steelworkers union ahead of the announcement, as its contract "would seem to require."
The lawmakers asked Hashimoto to answer specific questions about the proposed acquisition, and whether Nippon was aware of the "full scope of commitments made to workers under U.S. Steel's contract with the steelworkers union, which represents thousands of workers at the steelmaker.
Fetterman vowed on Monday to do everything in his power "to block this foreign sale."
The union has also come out against the transaction.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.