US Steel CEO warns failed sale to Nippon Steel would lead to steel mill closures

The CEO of U.S. Steel has warned that the company would be forced to close steel mills if a pending $14 billion investment goes ahead. Acquisition by Nippon Steel It falls.

U.S. Steel CEO David Barritt said: of The Wall Street Journal In an interview, he said Nippon Steel's promise to invest $3 billion to upgrade U.S. Steel's Mon Valley plant in Pittsburgh and its Gary, Ind., steel mill is necessary for the company to be economically competitive and keep workers employed. Mr. Barritt said the investment would not be made if the deal falls through.

“If the deal falls through, we're not going to do it,” Barritt told The Wall Street Journal about the investment. “I don't have the money.”

Barritt's comments come after Democratic presidential candidate Vice President Kamala Harris announced on Monday that she opposes the merger, echoing President Biden's views. Harris's rival, former President Trump, said in February that he would block the merger if elected. The United Steelworkers union also opposes the deal.

VP Harris joins Trump and Biden in opposing US Steel and Nippon Steel merger

United States Steel Nippon Steel announced the $14.9 billion deal in December. The Japan-based company has previously invested in and operates steel facilities in the United States and said it plans to retain its name, brand and headquarters after the deal closes.

Nippon also said the deal would not result in any plant closures or job cuts through 2026. The company said last week it would nearly double its investment in revitalizing U.S. Steel's Mon Valley and Gary steel mills over the next few years to $2.7 billion.

Burritt told the Journal that if U.S. Steel closes the Mon Valley plant, Move headquarters from Pittsburgh They moved much of their production to the South, thinking, “If those factories aren't going to last the next 10 years, why stay there?”

Nippon Steel says no job cuts or plant closures in US steel acquisition

U.S. Steel held a workers' rally at its Pittsburgh headquarters on Wednesday in support of the Nippon Steel deal. (Photo by Justin Merriman/Bloomberg via Getty Images/Getty Images)

The Biden-Harris Administration's Department of Justice Antitrust Law Review Regarding the proposed transaction, the Committee on Foreign Investment in the United States (CFIUS) is reviewing the transaction's national security implications because Nippon Steel is a Japan-based company.

Japan has pushed back the expected completion date for the deal from September to December, citing ongoing consideration.

Mr. Barritt told The Wall Street Journal that opposition to the U.S. Steel-Nippon Steel merger is “puzzling and confusing,” given the investments that would be made in the aging Mon Valley and Gary steel plants. The company is planning a rally of employees in support of the deal at its Pittsburgh headquarters on Wednesday.

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Nippon Steel announced plans to invest about $3 billion to upgrade U.S. Steel's Mon Valley and Gary plants. (Photographer: Justin Merriman/Bloomberg via Getty Images/Getty Images)

U.S. Steel told FOX Business it has about 3,800 employees in Pennsylvania, including at its Mon Valley plant, headquarters, research center and other corporate functions. Gary works in Indiana. The company has more than 4,300 employees.

Last year, the company rejected a $7.3 billion takeover bid from Cleveland-Cliffs, citing concerns about market concentration for steel supplied to the company. Automotive Domestic supply of iron ore could pose regulatory problems.

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U.S. Steel shareholders approved the $14.9 billion deal with Nippon Steel in April, with 98% of shares voted in favor of the deal.