US President-elect Donald Trump announced on Monday that he would block Japanese steel giant Nippon Steel from acquiring its US rival US Steel, a takeover initially announced in December 2023 for $14.9 billion.
“I am completely against US Steel, once great and powerful, being purchased by a foreign company, in this case by Japan’s Nippon Steel,” the Republican wrote on his Truth Social network.
“Through a series of tax incentives and tariffs, we will restore US Steel to greatness and strength, and it will happen FAST! As president, I will block this agreement,” added Mr. Trump, who is due to succeed Democrat Joe Biden on January 20.
During the presidential campaign, Mr. Trump pledged to block the operation if it was not approved by the time he came to power, in line with his protectionist positions.
For the moment, the Commission on Foreign Investment in the United States (CFIUS) is still studying the takeover project and must submit its recommendations to President Biden, who will make the final decision.
In difficulty, US Steel had warned that if the takeover failed, it would be forced to abandon massive modernization investments on several sites, at the cost of social damage and possible closures of steelworks.
For its part, the Japanese group quickly reacted on Tuesday to Donald Trump’s statements, reaffirming its intention to protect the industrial system and jobs in the United States.
“Nippon Steel is committed to protecting and growing US Steel in ways that strengthen American industry, the resiliency of the national supply chain, and the national security of the United States,” while “guaranteeing” union jobs, he said. he indicated in a press release.
“We will invest no less than 2.7 billion dollars in the sites (where the unionized organizations are present), we will introduce our cutting-edge technological innovations”, so as to produce “the most efficient steels for American customers”, he said. added Nippon Steel.
The USW (United Steelworkers) union is fiercely opposed to the takeover for fear of social disruption, even if the Japanese group is committed to maintaining employment.
Joe Biden, like Mr. Trump, has also repeatedly expressed his opposition to the operation, considering it “essential” that US Steel remains an American company “owned and operated” in the United States.
In November, the Japanese steelmaker nonetheless displayed its serenity, counting on the acquisition being completed by the end of the year, before the Democratic president leaves the White House.
“We expect the transaction to be finalized in the fourth quarter of 2024, by December,” the company then said in a presentation of its quarterly results.
“Unless things change drastically, I believe (the acquisition) will be completed by the end of the year,” Nippon Steel vice-president Takahiro Mori told reporters.
For its part, the Japanese government has refrained from expressing itself on the subject in recent months.
