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Biden’s decision on U.S. Steel deal may wait, offering reprieve to sale’s supporters

Jack Troy
| Friday, September 13, 2024 3:02 p.m.
TribLive
U.S. Steel has found itself caught in a political maelstrom over a proposed $14.9 billion sale to Tokyo-based Nippon Steel.

White House officials have signaled a delay in President Joe Biden’s decision on whether to block a $14.9 billion Japanese takeover of U.S. Steel, a small reversal of fortune for a deal that looked as good as dead earlier this month.

Reacting to a Washington Post report that Biden might wait until after Election Day, West Mifflin Mayor Chris Kelly said he’s “elated” and wants the president to speak with local leaders and workers before weighing in on Nippon Steel’s pending acquisition.

“It’s frustrating, but it’s almost like a reprieve that, ‘OK, we’re going to think about this now,’ ” Kelly said. “Come on out and meet the people … just be educated on the subject.”

The Mon Valley Works, an integrated — and largely outdated — steelmaking operation that employs about 3,000 Western Pennsylvanians, is partially in West Mifflin.

Nippon has pledged a $2.7 billion investment through 2026 to upgrade U.S. Steel’s union-run facilities, including at least $1 billion for the Mon Valley Works.

Despite these promises, national security implications have remained front of mind for federal lawmakers, regulators and, most importantly, the president. Nippon’s relationship with the United Steelworkers also has grown fraught — even hostile — since the deal was announced in December, documents released Wednesday show.

The Post previously reported that Biden was gearing up to block the deal, which is under scrutiny by the Committee on Foreign Investment in the United States for security reasons.

The president cannot block a private transaction without the panel’s final report.

A White House spokesperson told the Post an announcement was never imminent and the president will wait for a review board recommendation.

Spokespeople for Nippon and U.S. Steel declined to comment.

The United Steelworkers International President David McCall provided TribLive with a brief statement shortly after the news broke Friday.

“President Biden and Vice President Harris have been clear and consistent in their support for USW members and in their call for U.S. Steel to remain domestically owned and operated,” he said.

Indeed, Biden and Harris have voiced concerns about the sale along with her Republican rival in the November election, Donald Trump.

At a Labor Day rally before hundreds of union members and supporters in Pittsburgh’s South Side, Harris insisted U.S. Steel remain American owned and told the crowd, “I will always have your back.”

Last month in York County, Trump reiterated his opposition to U.S. Steel falling into Japanese hands — contradicting the work of some advisers and lobbyists who have been part of his inner circle.

Many lower-level officials feel differently. State Senate President Pro Tempore Kim Ward told TribLive Sept. 4 she is over the “pandering and political grandstanding” and believes job preservation should come first.

Earlier that day, U.S. Steel CEO David Burritt warned his company will pivot away from Western Pennsylvania blast furnaces without a deal, “putting thousands of good-paying union jobs at risk” and harming domestic steel at large.

Sam DeMarco, Allegheny County councilman at large, would add “hope” to the list of possible losses.

“When I say hope, this isn’t a buzzword, this is how these workers feed their families and put a roof over their heads,” DeMarco said. “I’m not one of those folks that’s going to stand there and say they should learn how to code.”

“I’ve seen no plan B,” he continued.

Cleveland-Cliffs, with a large stainless steel plant near Butler, has shown continued interest in acquiring the U.S. Steel plants it unsuccessfully bid for last year.

Such a transaction would consolidate most or all of America’s blast furnace capacity and iron mines in a single firm, making it unlikely to survive federal antitrust reviews.

Kelly said the hesitance to work with one of America’s closest allies doesn’t make much sense, alluding to the fact that U.S. Steel does not sell anything directly to the Department of Defense.

“It’s not as though we’re going to get (thousands of) U.S. Steel employees to sabotage the steel so we can hurt American soldiers,” he said. “I mean, think how bizarre that is.”


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