The president-elect of the United States, Donald Trump, announced last Monday that he will “block” the acquisition of the American steel company US Steelplanned by its Japanese counterpart, Nippon Steel. This purchase was going to take place for a figure close to 15,000 million dollars, including the debts of the American company.
This is what Trump announced on the social network Social Truththe social network that he founded through his technology company, Trump Media & Technology Group, and where he usually announces his plans for when he takes office as president.
“I’m totally against of the once large and powerful US Steel being purchased by a foreign company, in this case Nippon Steel of Japan. Through a series of tax incentives and tariffswe will make American steel strong and great again, and it will happen FAST! As president, I will block this agreement from happening,” he declared. trumpmaking clear his frontal opposition as president to the acquisition agreement.
Reactions to the announcement
For its part, the company being purchased, US Steel It is currently owned by The Vanguard Group and BlackRocktwo of the largest investment companies in the world, among other investment funds. Representatives of the steel company demonstrated in favor of the operationalleging the need for the sale agreement to guarantee sufficient investment in its manufacturing plants. Mon Valleyin Pennsylvania, which they could close in case the operation was blocked.
On the other hand, Nippon Steela public company that positions itself as the third largest steel producer largest in the world today, has not been slow to react to Trump’s message. They maintain that they are “convinced to protect and develop US Steel so that strengthen American industry“, the resilience of the national supply chain and the security of the country.”
The Japanese steel company assures that they will invest “no less than 2.7 billion in its facilities”, in addition to introducing its world-class technological innovation and guaranteeing unionized jobs, “so that US Steel workers can manufacture the most advanced steel products for American customers,” the firm declared.
After the November presidential elections in the United States, which ended with donald trump elected for a second term at the head of the US administration, Nippon Steel assured that they hoped to close the operation before the beginning of the new year, before the mandate of Joe Biden ended. However, the Japanese company has also encountered opposition from the still president, as Biden assured that it is vital “that US Steel remains a domestically owned and operated American steel company.”
The sale is still under review, and the body in charge of this is the Foreign Investment Committeedependent on the Treasury Secretary whose secretary is still Janet Yellen. However, starting in January next year, Trump’s chosen one will take over,Scott Bessent, billionaire and economic advisor to the new president-elect during his campaign.
Despite everything, Nippon Steel spokespersons declared on November 7, in a results presentation, that they expected the transaction to be closed «during the calendar year 2024«, and that they were still awaiting the results of the evaluation of the agreement by the US authorities.
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