Trump calls it a disaster, bidding it stops - now Trump is celebrating Japan's shopping from US Steel in Pittsburgh

Trump calls it a disaster, bidding it stops - now Trump is celebrating Japan's shopping from US Steel in Pittsburgh

On Friday, President Donald Trump travels to Pittsburgh to celebrate a deal that he once promised - the long -term plans of the Japanese steel manufacturer Nippon Steel to take over the iconic American steel producer Us Steel.

political reactions and concerns

The takeover of an American company by a Japanese company has triggered cross -party opposition. President Joe Biden Blocked the deal shortly before he resigned. But a week earlier, Trump announced that he would agree to the deal, although he described it as a "partnership" between the two companies and not as a purchase. When asked about the deal on Sunday, he explained: “It is an investment and will be a partial takeover (through Nippon).”

The exact conditions of the deal have not been published since the announcement of last week. To the outside, it seems that Nippon will acquire all outstanding stocks of US Steel at a price of $ 55 per share, i.e. around $ 12.5 billion-under conditions that first in December 2023 . Trump also stated that Nippon had agreed to invest $ 14 billion in US Steel's American businesses.

None of the two companies have commented on the conditions of the deal since Trump's announcement. The United Steelworkers, who represented the hourly employee of US Steel in Pennsylvania and Indiana, explained that they do not refrain from their opposition to the deal, since they believe that it continues to be a complete takeover by Nippon.

The concerns of the union

“The recent announcement on the‘ partnership ’raises more questions than you give answers,” says the union's explanation. "Nippon continues to insist that they would only invest in the plants of US Steel if they have the company completely. We have seen nothing in the reports that indicated that this position has changed."

Even if Nippon has all stocks, this is obviously done with restrictions. The “control” to which Trump refers is probably exercised by the Federal Government, the so -called “golden shares” to US Steel is a condition for approval. This enables the government to approve the majority of the board members, all of which have to be American, the Senator from Pennsylvania, David McCormick, CNBC .

earlier promises and the future of US Steel

Although Trump assured several times during the election campaign that he wanted to block the deal, he has shown that he may be open to the deal since he took office. In March, the government submitted an application to extend two deadlines in a lawsuit that Us Steel and Nippon Steel had raised against the committee for foreign investments in the United States that checked foreign investments on national security risks. Trump then ordered a new review of the takeover April an.

Trump said that members of the congress and local unions, which represented the US Steel employees every hour, campaigned for the approval of the deal. Nevertheless, the national trade union representatives Trump are asking to block the deal because they consider it as “catastrophe for American steel workers, our national security and the future of American industry”.

us Steel and its meaning

us Steel was once a Symbol for industrial dominance. It was the first company in the world that was one Evaluation of $ 1 billion, shortly after its foundation in 1901. In the course of the 20th century, the company played a decisive role in the US economy because the steel required for cars, household appliances, bridges and skyscrapers, as well as weapons that were decisive in the Second World War.

But since then it has lost importance for decades and is no longer the largest steel producer in the United States. With only 14,000 US employees, of whom 11,000 members of the etc. are, the company is now a relatively small employer.

Nevertheless, it is unlikely that politicians who like to talk about America's size want the company to fall into foreign hands - especially in the politically significant state of Pennsylvania. Therefore, the supporters of the deal make it clear to suggest that Us Steel remains American, with an American CEO and headquarters in Pittsburgh, even if it becomes a 100 % subsidiary of a foreign competitor.