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© KYODONippon Steel promises no cuts to U.S. Steel's output for 10 years
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リッチ
But after 10 years? Watch out. Haha
Desert Tortoise
The irony is that if Nippon Steel doesn't buy US Steel there will be immediate layoffs and production cuts. These won't happen, maybe, ten years from now but the week following the rejection of the deal by the US Government. US Steel has already said that if the Nippon Steel deal is denied they will close their Pittsburg plant immediately and lay everyone there off.
リッチ
Solution. Setup a fully owned and run America company. That includes an American CEO and board with more than 51% American owned.
garymalmgren
Hi リッチ
RE; Solution. Setup a fully owned and run America company. That includes an American CEO and board with more than 51% American owned.
If that is the solution, why aren't the venture capitalist on Wall St jumping on it?
GuruMick
Built in inflexibility not good for outside investors.
Who can tell the market demand for US made steel in 10 years ?
Maybe India will become a steel powerhouse, with pricing lower than US.
OssanAmerica
No American investors are willing to put up 51%.
Taking US Steels condition and future prospects in focus, all this is tantamout to debating whether to use a fire extinguisher when the house is already on fire. Rejecting this deal is putting a nail in the coffin for US Steel.
Fighto!
If the Nippon Steel bid is rejected, the only way US Steel can survive is by nationalisation. Being majority owned by the government/taxpayer. Because no US company is touching US Steel with a barge pole.
I wonder if the usual suspects will be happy with this form of socialism?
リッチ
Then let the America. Government do it. It’s a national security risk and there is nothing stopping japan steel to setup an independent American company. There is nothing stopping nail in the coffin on the issue. Heard the same about GM and it came back stronger. Some things foreigners need to keep their hands off.
Peter Neil
リッチToday 08:55 am JST
good grief.
gm ended up with the canadian government and ontario provincial government as significant stockholders through the gm bankruptcy.
and gm has not paid back the $billions in loans and guarantees by the taxpayers going all the way 25 years ago.
rocketpig
Not enough grease
Jtsnose
It is important that no matter where the steel is used in US or Japan, the steel should be of the safest quality and standard, also meeting sustainable guidelines . . . .
JJE
They promise not to asset strip, plunder the worker's pensions, violate their families and children, rob local economies, offshore production and generally not commit an economic war-crime for a decade.
Pull the other one.
This is about slyly decommissioning it, eliminating a competitor and seizing their market share in the most underhanded, turncoat way.
Either the Japanese or US steel industry has to go down the gurgler in a crowed international marketplace. DC needs to pick one.
commanteer
Nippon Steel is a Japanese company, not an American one.
Nguyen Dang
Uncle Sam will not let US steel to be sold to Nippon Steel or other foreign entities.
Nguyen Dang
As US Steel's clients include major American auto makers and major US defense weapon makers.
grc
Why should Nippon Steel wish to acquire US Steel if its outlook is so dire?
WoodyLee
STUBBORNESS pays off sometimes.
WoodyLee
So how many brown envelops has been passed on to the current U.S. steel executives to push this deal !?!
John-San
The deal is 5 years before Nippon steel moves USA steel offshore, USA steel will still have the same output but not in the land USA. Like the USA Government again leave their citizen in the dark about important matters that will alter voting patterns. That what occurs when you obtain your education through Fox new and Disney movies.
Peter Neil
grcToday 11:35 am JST
because its plan is to invest in modernizing the facility, improving efficiencies and producing higher quality steel, mostly external body steel for auto plants in the u.s.
Brian Wheway
When Donny gets into the white house and starts changing import tariffs as he says, I wonder if any of these will include steel imports tariffs? I am wondering if the Japanese bosses have thought about this, and could this be a reason to purchase the steel plant, because if the steel plant is making steel in the USA, it probably won't be liable for import tax as it's in the USA already.
iron man
Surely this is japan topic, who is funding the USD14.1Blln (yen ????) bid and what will the japan? investors and japan people gain from it?? US problems are for US peoples. have you already been made aware that wall st is behind it all and banking it. I dunno, crazy. even USD14.1Mln, better uses in Jpn?
Peter Neil
the u.s. already has 25% tariffs on steel and aluminum imports.
those tariffs reduced imports by 15% and increased u.s. steel production by only 1.9%.
the companies using using imported steel and aluminum that’s not made in the u.s. were hit hard. and the companies switching to domestic steel had to raise prices. everyone had to raise prices.
where do you think the inflation in cars, houses, machinery came from?
Chabbawanga
Trump needs to nationalise it.
Desert Tortoise
Industrial conglomerate Esmark has a standing offer to buy US Steel but it is only a little more than half of what Nippon Steel is offering. The CEO of Esmark was once the President of US Steel's European operations.
Cleveland Cliffs also made an offer that US Steel rejected and for good reason. It was a dead end in terms of anti trust law. US Steel and Cleveland-Cliffs together produce over 90% of the rolled sheet steel used by the US auto industry. Allowing them to merge would never pass muster with anti trust regulators and should never be allowed. Bad enough there are only two companies in that market.
Desert Tortoise
You are missing something. US Steel is one of only two suppliers of rolled sheet steel to the US auto industry. That includes the US operations of Toyota, Honda and Nissan. That demand is not going to go away. The only other big manufacturer of that product is US Steel's arch rival Cleveland-Cliffs. Together they control over 90% of the market for rolled sheet steel. Nippon Steel wants a piece of the action and do you blame them? The demand for cars in the US is not going to subside and protectionist US policies make having plants in the US a better business tactic than trying to manufacture elsewhere. The Japanese car companies have manufacturing in the US. Now Nippon Steel wants in. It is a rational business move.
John-San
Desert Tortoise: After 5 years if the deal go through. All good useable infrastructure of USA steel will be moth ball and more to India. Why ? closer to 1st class cheaper materials from Australia. Very cheap labour. and India is central to the world steel markets. USA steel and what it produce will be sold to all comer not just supply the USA market. USA Steel is dead in 5 years in the USA or this years it depends if the deal goes through. If the deal dies so does USA Steel. It that simple.
1glenn
Nippon Steel needs to wake up to the new reality; want a favor from Trump? Bring your checkbook.
Brian Wheway
@chabbawanga, Donny probably will let it go into liquidation, then buy it up at a pittance of a price, open it back up and start lining his own pockets