The head of the United Steelworkers union, David McCall, expressed concerns about the potential impact of Japan’s Nippon Steel’s $15 billion takeover bid for U.S. Steel. McCall stated that he has not received assurances from Nippon Steel that they are committed to ensuring the long-term success of the American company.
McCall cited the potential for Nippon Steel to import steel into the U.S. from its international mills, which he believes could lead to the erosion of U.S. Steel’s domestic operations. He also expressed disappointment that Nippon Steel has not done enough to stop or intervene in what he sees as bullying tactics by U.S. Steel CEO David Burritt, who has threatened to close steel mills and relocate the company’s headquarters if the sale does not go through.
Nippon Steel has denied plans to use the deal to import steel and has pledged to protect jobs and invest in U.S. facilities. However, McCall is skeptical of these claims, saying that he has seen no evidence to support these assertions.
The deal is currently undergoing a national security review by the Committee on Foreign Investment in the United States (CFIUS), which is expected to conclude later this month. The White House has indicated that President Joe Biden will wait for the outcome of the review before deciding on whether to block the deal.