Businesses warn Yellen on political pressure over U.S. Steel sale

This is an election year, Nippon Steel and USS made a grave tactical timing error. Should have shelved it until after the inauguration.

This is an election year, Nippon Steel and USS made a grave tactical timing error. Should have shelved it until after the inauguration.

This is also an election year in Japan as well, so, no way is Japan going to allow a foreign company to bu 7 and i .

The deal is dead,only the President decide

after reports said incumbent Joe Biden plans to stop the sale..

Plans to stop the sale ?? nice narrative.. will not happen and from Nov onwards, DT will be blamed for not stopping the sale.

If USS plans to shutter should Nippon Steel buyout not happen...a loss to both parties, but more so to US

Current USS employees are assured of keeping their jobs in buyout scenario.

As stated here, this proposed event within the election period is bad timing. Both candidates want voters to think the only way to 'make/keep America great' (again?) Is to act like foreign investment is criminal, just for these few remaining weeks.

If USS folds voters can go figure out their own solution. Nippon may not wait forever.

Mandoade -

This is also an election year in Japan as well, so, no way is Japan going to allow a foreign company to bu 7 and i .

No it isn't.

The general election is due to be held next year.

This deal may fail, but I expect there will be a huge disconnect between the noble things politicians on both sides are saying about "national security" etc. and the reality on the ground.

The union's original beef with Nippon Steel seems to be that they did not contact the union before bidding. There is also a local bidder who the union favours. If a takeover by someone is inevitable and the plants are not actually at risk of closing, claiming they are by USS will also amount to media grandstanding.

@Mandoade

This is also an election year in Japan as well, so, no way is Japan going to allow a foreign company to bu 7 and i .

Yeah exactly! Hypocrisy at its highest level!

7 and i will sell because the current management is running it into the ground. It might look good at first glance but the future is bleak. In Japan, Taiwan, Hongkong, China, South Korea the number of outlets will decline and turnover of the remaining ones be reduced. In Thailand, Australia and other south east asian countries there are possibilities. With new owners and management.

Nippon Steel will not savd US steel, it will only prolongue its agony. Steel is a strategic business sector andcwill always be kept alive by US government

At this point, I see Japan and the USA more as partners than as competitors, and thus I do not fear a Japanese takeover of US Steel. If a Japanese company can run US Steel at a profit while keeping thousands employed, while no American management teams seem to be capable, what is the downside in letting a Japanese team attempt to do so?

1glenn, exactly!

The union's original beef with Nippon Steel seems to be that they did not contact the union before bidding. There is also a local bidder who the union favours. If a takeover by someone is inevitable

There are two US firms bidding for USS. The first is Cleveland-Cliffs. They offered $7.3 billion vs the $15 billion Nippon Steel is offering. The US auto industry strongly opposes allowing Cleveland-Cliffs taking USS because Cleveland-Cliffs is already the nations largest producer of hot rolled steel. If they acquired USS they would control 90% of the hot rolled steel market and put the auto industry in the position of buying one of their major inputs from a monopoly. That merger is a non-starter on anti trust grounds.

The other offer is from Esmark, another US based conglomerate that produces steel among other things. Besides its steel-producing and distribution business, privately held Esmark has operations in aviation, oil and gas exploration, real estate and other industriesTheir offer is around $7.5 billion, still well below what Nippon Steel is offering.