Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Trump reiterates opposition to Nippon Steel's takeover of U.S. Steel

Published 12/02/2024, 09:37 PM
Updated 12/03/2024, 02:25 PM
© Reuters. FILE PHOTO:  A United Steelworkers sign is seen outside the Great Lakes Works United States Steel plant in River Rouge, Michigan U.S., September 16, 2024.  REUTERS/Rebecca Cook/File Photo
USSX34
-

(Reuters) -U.S. President-elect Donald Trump said on Monday a series of tax incentives and tariffs will revive storied American firm U.S. Steel, as he reiterated his opposition to Nippon Steel's planned $15 billion purchase of the company.

"I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan," Trump wrote on his social media platform Truth Social.

"I will block this deal from happening. Buyer Beware!!!"

Nippon Steel hopes to close the deal before Trump retakes the White House on Jan. 20, despite opposition from President Joe Biden and a powerful U.S. labor union.

In a statement on Tuesday following Trump's comments, Nippon Steel said it would invest no less than $2.7 billion into U.S. Steel's unionized facilities, secure union jobs and share technological innovations.

"Nippon Steel is determined to protect and grow U.S. Steel in a manner that reinforces American industry, domestic supply chain resiliency, and U.S. national security," it said.

U.S. Steel, in a separate statement, reiterated its support for the deal, saying it would preserve steelmaking in Pennsylvania and Indiana and that the transaction should be approved on its merits.

Last month, Japanese Prime Minister Shigeru Ishiba wrote to Biden, who has referred the deal to a government panel that reviews foreign investments for national security risks, asking him to approve the transaction, sources have said.

© Reuters. FILE PHOTO:  A United Steelworkers sign is seen outside the Great Lakes Works United States Steel plant in River Rouge, Michigan U.S., September 16, 2024.  REUTERS/Rebecca Cook/File Photo

The deadline for that Committee on Foreign Investment in the United States (CFIUS) review is this month. CFIUS could approve the deal, possibly with measures to address national security concerns, or recommend that the president block it. It could also extend the review.

The United Steel Workers union, which opposes the deal, welcomed Trump's comments.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.