Nippon Steel of Japan is expected to acquire US Steel for $14.9 billion. According to a special report released by the Western news agency Reuters, the Biden administration thinks that the Japanese company’s takeover would hurt the US steel industry and present a security risk to the country.
Republican presidential candidate Donald Trump said he would veto the agreement if elected, while Democratic presidential candidate Kamala Harris said she wants US Steel to be “American owned and operated.” In an era when American politics are divisive over the most essential issues, this bipartisan consensus is uncommon. There are risks to the United States that have been identified by the Committee on Foreign Investments in the United States (CFIUS) as a result of the transaction,” according to a source cited by Reuters.
However, those in American business circles think that the agreement is a good one and that it is the only way to keep US Steel afloat. According to the two companies’ argument, “Rejection of this transaction will lead to the idling of US Steel’s blast furnace facilities. Likely cost thousands of jobs; and ultimately weaken the quality and resiliency of steel supply to US industries. The American steel major believes Nippon Steel’s takeover will benefit its employees and the American industry.
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