Tthe Committee of Foreign Investment in the United States (CFIUS) is preparing to rule on the $14.9 billion deal by Nippon Steel to purchase U.S. Steel, based on the argument that Nippon already has investments in other steel companies in the U.S., and that adding U.S. Steel would be giving it too much influence. President Biden instructed CFIUS to review the deal.
Nippon and U.S. Steel may challenge a negative decision in the courts. The steel workers union (USW) president opposes the deal, claiming they would ship jobs overseas, but many union members are campaigning to approve the deal.
On Dec. 12, Nippon’s Vice Chairman Takahiri Mori joined Gary, Indiana Mayor Eddie Melton—saying the deal will insure the future for the U.S. Steel Gary Works. Mayor Melton highlighted the fact that Nippon Steel has been in the U.S. for decades. The company operates three plants in Indiana, eight nationwide, and currently employs about 4,000 people. The plant in Gary is named after the founder of U.S. Steel, Elbert Henry Gary.
“I think we need to be concerned if this deal does not happen, the current [U.S. Steel] CEO stated that there will be plant closures,” said Mayor Melton. “Nippon has been very clear that they want to honor the contract; they want to honor the pension obligations.”
