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Post by Admin on Apr 25, 2024 20:35:32 GMT
(Bloomberg) -- U.S. steelmaker Cleveland-Cliffs remains interested in acquiring all or some of U.S. Steel’s assets if U.S. authorities block Nippon Steel’s takeover of U.S. Steel.
Lourenço Goncalves, CEO of the Cleveland-Cliffs, which lost out to Nippon Steel in the bid to acquire U.S. Steel, said in a telephone interview on the 25th, ``If possible, I intend to buy everything, but my interest is 100% in the union's "We're focused on the assets we represent."
The $14.1 billion (approximately 2.19 trillion yen) acquisition of US Steel has attracted strong interest from US lawmakers and the White House, and has become embroiled in the political vortex of an election year.
Goncalves reiterated his view that the takeover by Nippon Steel is hopeless because it lacks support from labor unions and the authorities aim to keep the "base" industry domestic.
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Post by Admin on May 5, 2024 0:17:36 GMT
Nippon Steel said Friday it was postponing the expected closing date for its $14.9 billion acquisition of U.S. Steel, after the Department of Justice (DOJ) requested additional information and documents related to the deal.
Nippon pushed the closure date back by approximately three months, saying it revised the estimated timeline for the deal’s closing from the second or third quarter of 2024 to the third or fourth quarter.
The Japanese steelmaker revised the timeline after receiving the second request “and following careful deliberation with respect to the regulatory processes,” it said.
The delay comes three weeks after U.S. Steel shareholders approved the acquisition, despite opposition from the Biden administration, steelworkers and congressional lawmakers.
Nippon announced the delay two weeks after President Biden “promise[d]” American steelworkers that U.S. Steel would remain American owned and operated, despite the previous week’s shareholder vote.
“U.S. Steel has been an iconic American company for more than a century. And it should remain a totally American company — American owned, American operated, by American union steelworkers — the best in the world. And that’s going to happen. I promise you,” Biden said in remarks at United Steelworkers headquarters in Pittsburgh.
The deal was announced in December.
Biden and lawmakers have specifically voiced concerns arguing the deal could threaten American steelworkers.
Biden came out in staunch opposition to the proposed deal in mid-March, when he said the U.S. needs to “maintain strong American steel companies powered by American steel workers.”
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Post by Admin on May 6, 2024 22:16:47 GMT
Nippon Steel's acquisition of US steel giant US Steel is being toyed with politics. Former President Trump, who aims to return to the US presidency under the slogan of ``America First'', has expressed his intention to firmly prevent this. President Biden, who cannot afford to lose the votes of labor unions, which are his support base, has effectively opposed the move for re-election.
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There is a possibility that the authorities that give the go-ahead for M&A after screening may take in the wishes of the political side, and concerns have begun to simmer that Nippon Steel's acquisition will be scrapped.
In response to the acquisition of Nippon Steel, the United Steelworkers (UAW) said in a statement that a company that represents the United States should be owned domestically, adding: "We are extremely disappointed that they have chosen to sell themselves to a foreign company." strongly criticized.
Nippon Steel has promised to maintain employment and make additional investments, but the USW has criticized it as a ``collection of hollow promises,'' and it is currently not gaining understanding.
The acquisition issue is causing a contest for votes in the presidential election. In a meeting with union officials in January, former President Trump emphasized, ``I would stop it immediately. Absolutely.'' Approximately one month after Trump's remarks, President Biden also expressed his disapproval of the acquisition by Nippon Steel, pointing out in a statement that ``It is important that the company remains a domestically owned and operated company.''
Further complicating the situation, the U.S. Congress has expressed security concerns. In a letter sent to President Biden, Sen. Brown (Democratic Party) claims that Nippon Steel has deep ties to the Chinese steel industry and the Chinese government. In response, Nippon Steel has responded by saying, ``We will enhance the U.S. advantage and strengthen our supply chain.''
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