US President-elect Donald Trump reiterated that he intends to prevent the purchase of American steel company US Steel by the Japanese group Nippon Steel, even promising to block the agreement shortly after returning to the White House next month.
“I am completely against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump said on his Truth Social platform on Monday.
The publication comes as the leading Japanese steelmaker hopes to complete its planned purchase of the US producer by the end of the year – Trump takes office on January 20.
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“Through a series of tax incentives and tariffs, we will make US Steel strong and great again, and it will happen FAST!” he wrote. “As president, I will prevent this deal from happening. Buyer beware!!!”, threatened the president-elect.
During the presidential race, Trump promised that, if elected, he would block the acquisition agreement negotiated by the administrations of the two steel companies, worth an estimated value of more than US$14 billion.
According to the agency Kyodo Newsin response to Trump’s statements, Nippon Steel issued a statement reiterating the importance of the acquisition, saying it “will not only help US Steel grow, but also strengthen the national security of the United States.”
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Addressing its plan to invest at least $2.7 billion in the company’s U.S. facilities, Japan’s largest steelmaker also said it will introduce its technology “so that U.S. employees can provide cutting-edge steel products to American customers.” And he promised to protect jobs.”
Japanese Prime Minister Shigeru Ishiba refused to comment on the Nippon Steel takeover plan during a parliamentary session, calling it “a deal by an individual company.” At the same time, he emphasized the importance of the two countries boosting economic cooperation through bilateral investments.
US Steel shareholders support the acquisition, believing it will make the company more competitive globally by creating the world’s third largest steel mill by production volume.
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But the proposed merger was opposed by the United Steelworkers union, based in Pennsylvania, which was a key state in the US presidential election.
With union votes seen as vital to paving the way to the White House, , which was announced in December last year.
The Committee on US Foreign Investment is reviewing the proposed acquisition and is expected to provide an opinion by the end of December.
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The committee, also known as CFIUS, which is chaired by Treasury Secretary Janet Yellen, is responsible for examining whether foreign investment transactions involving U.S. companies pose a threat to national security.
US Steel, founded in 1901 and also based in Pennsylvania, was once a symbol of American economic prowess but has struggled to keep up with competition from foreign rivals. It ranked 24th globally last year, according to data from the World Steel Association.
