Trump’s U-turn on Nippon Steel Stake in U.S. Steel Follows Rethink
Nippon Steel’s Takahiro Mori visited US Steel’s Mon Valley Works Image credit US Steel
We need modernization for national security and economy: Patrick J Murphy
By Raisina Correspondent
New Delhi, February 8: Former Congressman Patrick J Murphy hinted on a rethink in Washington over the Nippon bid to take stakes in the U.S. Steel ahead of President Donald Trump announcing a revision in his opposition to a buyout by the Japanese steelmaker.
Speaking to Yahoo Finance, Murphy said: “We just had a deal. It was Nippon’s deal. It was trying to buy U.S. Steel for about $15 billion. They’re going to invest another $2 billion.”
U.S. President Donald Trump on Friday announced that Japan’s Nippon Steel will not buy U.S. Steel but invest heavily. Trump’s statement came after his predecessor Joe Biden had blocked the buyout deal of the U.S. Steel by Nippon Steel.
Trump made the announcement while addressing a press conference with visiting Japanese Prime Minister Shigeru Ishiba at the White House.
“There was a review on it called a CFIUS review. It basically said this isn’t the national credentials of America. And why is that steel is important, our manufacturing and modernizing that is critically important and it was next,” added Murphy.
He stated that “we got to get after solutions like that that was. A private sector investment of the US steel company, $15 billion worth and every steel worker is getting basically a $5000 bonus”.
He argued that “we have other foreign companies like BMW, Toyota that are doubling down on American manufacturing. That’s the type of modernization that we need today that is tied to our national security and our economy.”
However, there are protests within the U.S. against any deal with Nippon Steel. With U.S. President Donald Trump announcing a U-turn on Nippon Steel taking stakes in the largest American steelmaker, the Coalition for a Prosperous America (CPA) has warned against any deal for the U.S. Steel.
CPA Fumes at Nippon Steel Taking Partial Ownership of U.S. Steel
The CPA protested in a statement move to give “partial ownership of a critical pillar of America’s industrial base to a foreign entity”. “Nippon Steel has a long history of dumping in the U.S. market — predatory trade actions that should not be rewarded with a stake in U.S. Steel,” added the CPA in its statement.
It also stated that “Japan’s heavily subsidized steel industry has long sought to dominate global markets through predatory practices. Allowing this acquisition to proceed would have rewarded these tactics and set a dangerous precedent for other foreign buyers.”
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