Rival buyer for U.S. Steel emerges as U.S. extends deadline on Nippon Steel's bid

Good news for US Steel. It’s narcissistic to state if not Nippon Steel US Steel will surely have no buyers.

Lourenco Goncalves

The guy came out in a press conference and said "Japan is evil". That was facing a press audience, not on a hot mic. As if this takeover wasn't political enough already.

Let's see what Cleveland Cliffs and Nucor can come up with. Personally I don't see them being able to match Nippon Steel in price or terms. Can you imagine them agreeing to 10 years of no production reduction without government approval? But, still better than he US taxpayers paying for a government bailout after the same government quashed the deal.

kohakuebisuToday  05:10 pm JST

Lourenco Goncalves

The guy came out in a press conference and said "Japan is evil".

LOL. Nice way to say "we couldn't outbid Nippon Steel". He must think people are all idiots.

Ha!

Just waiting for Tata to sidle in at the last gasp.

USS certainly has dodged an economic pearl harbor. Allowing it to be asset stripped and cannibalized would have been horrendous, especially for the workers and their families, who would have been especially victimized on the inevitable economic death march at bayonet point.

@JJE But you'd be fine with it being bought out by a Chinese company if they put in an offer?

JJEToday  05:49 pm JST

USS certainly has dodged an economic pearl harbor. Allowing it to be asset stripped and cannibalized would have been horrendous, especially for the workers and their families, who would have been especially victimized on the inevitable economic death march at bayonet point.

Nice speech from someone who would love to see the US Steel Industry destroyed by Chinese (State assisted) competition. No ones' buying it.

US issue I leave it to the US tax payers to decide. US steel for US steel products

Anyone else watch this guy on video? He's going "We are Americans, we are Americans!"

All while sounding like Speedy Gonzales. LOL

Re; USS certainly has dodged an economic pearl harbor. Allowing it to be asset stripped and cannibalized would have been horrendous,

Yep. No American firm would do such a thing, would they Grekko.

https://www.youtube.com/watch?v=VVxYOQS6ggk

nippon steel offer was $15 billion.

cleveland cliffs offer declined by us steel before the nippon steel offer was $8.3 billion.

clevelnd cliffs “all-american deal” will be an “all-american steal” for them.

Yeah we knew it. After NS donates $565 million penalty payment to USS, Cleveland buys out.

@OssanAmerica--yep, it was played at length on NHK. The pawing of the flag prop, then in a thick accent complaints about Japan being worse than China. Stop sooking the blohd of Ah-mericans, he implored. Seemed like he was in an improv class, told to act out a foreign-born blue collar manager who had mixed up his meds.

I guess he had barely enough decorum to not say, They are eating the cats and dogs, the pets of the steel workers who live there. But it was still odd enough that I questioned if he was really CEO or the second coming of Jim Belushi.

The commentary I read was that CC and the unions supporting them want US Steel because it will give them a monopoly and monopoly pricing. This would be a disaster for US steel users, such as US builders looking at the Olympics, the football World Cup, and rebuilding LA and North Carolina, etc. and the car industry, but wave the flag enough and shout enough patriotic slogans and you can probably get your own way.

That was a great press conference by Lourenco Goncalves. Rarely do you see such a business leader with such zeal and passion for his chosen profession. Over 90 mins long.

He accused NS CEO of referring to him as a "thug and mafia boss". The article mentions he is being sued as part of the suit. From what he said, there is some real bad blood. He announced that he will have him deposed - in person, no zoom - in the Western District of Pennsylvania where they selected to sue him. Goncalves is clearly ready to fight fire with fire.

There is absolutely no way the merger will go ahead as it now stands.

Once again, certain elements are completely mischaracterizing things he said and falsely claiming he was saying nasty things about Japan and the Japanese people. He was squarely attacking the Japanese steel industry and certain business practices he alleged they employ. He also severely criticised their operations in China and made some colourful assertions.

@JJE--wrong, that was a volcanic rant aimed at all Japanese people. He said Japan has learned nothing since 1945. Do you agree? Try to spin that into a coherent critique of the Japanese steel industry.

This is an interesting development, but there must be a more complicated deal in mind. I think Cleveland Cliffs is already in debt, so Nucor will get one mill, CC will get a other piece, and I wonder if Nippon Steel is also in the mix somehow? Some part is evidently going to be All American to satisfy Biden and Trump, but maybe some other parts can satisfy other interests? This might get interesting, or it might be a disaster.

Can someone please explain why Nippon Steel is so hell-bent on this deal?

Again, the context was clearly criticism of the Japanese steel industry and certain controversial business practices - not the Japanese people. Stop playing the victim card.

Twisting it is absurd: he is actually a legal Brazilian migrant to America.

NS has actually filed a racketeering (RICO) complaint against him. He is clearly annoyed about that.

@dbsaiya--a chance to move up to third place in the global steel biz competition.

@JJE--to summarize, a thin-skinned Brazilian expat CEO ranted that Japan has learned nothing since 1945. Putting down a nation in response to being sued for racketeering by a rival steelmaker. Will likely continue the hysteric rants in court.

Goncalves:

"I would like to say that all my comments, particularly the seppuku comment, were specifically about Nippon Steel and their incredible arrogance in the way they approach this deal. We have and myself have the ultimate respect for the Japanese people. They're good people, they're great people. The Japanese people are good at heart but the Japanese corporations have a different relationship with their government."

He went then elaborated on the final point at more length. One can watch it at 1:16:45 mark on the video of the whole press conference.

So no, there was no 'volcanic rant' aimed at Japanese people. Complete nonsense.

He did not insult the Japanese people. He insulted the government and business tactics that invented dumping, tariff jumping and overcapacity… that ruins the lives and jobs of Americans.

that ruins the lives and jobs of Americans.

japanese automakers alone support 2.3 million jobs in the u.s.

Terrible new for UUS workers, Massive layoff will occur. Cleveland Cliffs, Offer got rejected because they want to move. USSteel. off shore without a cooling down period of 5 years. That why the deal was refused.

Anyway the insult and the abuse the Japanese people have injure off the USA before the deal to their best Allie in Asia have been slow sell off of USA treasury notes bonds 40 billion to date will now after the kick in the guts the stab in the back will see a increase 10 fold and are preparing to call on at lease 1/2trillion and to get ride of the other 1/2 trillion of the next 5 years. this will send up USA interest rate as a result.

This will be put to Trump Admin by Iishiba, what they do in response will either trigger the sell of 1 trillion of USA treasury debt or except the Nippon deal. It up to Trumps Admin to decide what will hurt the economy the most a small loss in 5years time or another trillion added to it all ready massive 34 Trillion debt. The smart money will see the Nippon deal excepted by Trump.

@JJE--why bring up seppuku unless one has a view of Japan that is centuries out of date. Would you make references to their long history of slavery at a news conference related to Brazil?

Because he was referring to atonement of corporate sins in Japan. He specifically said seppuku would not happen and contrasted it to the modern practice of executives bowing for the cameras, saying how such things have modernized. He then went on say he would like one of those gratuitous camera bowing sessions in apology to the nastiness directed at him by NS.

Bringing up anything related to Brazil would be inappropriate - he is a naturalized citizen of the US, clearly serving those interests 110% first and foremost.

Important to watch the whole thing to understand the context.

This idea won't pass muster with anti trust laws. US Steel and Cleveland Cliffs together produce over 90% of the rolled steel sheet used by the auto industry. If they merge the merged company will have a monopoly on the supply of rolled sheet steel. The auto makers will very likely sue to stop such a merger even if the US Government does not.

This Gonclaves is an absolute clown.

Trump might nix it anyway, but Gonclaves is an embarrassment to his firm.