Nippon Steel to invest additional $1.3 bil in U.S. Steel plants

This investment is a classic false flag to divert from their objective:

They just want to asset strip the joint and put US Steel into streamlined, managed decline to give the Japan steel industry, which faces an uncertain future in a crowded market, more room to breath.

Ummmmmm........, this acquisition isn't going anywhere, not a chance in hell. This is one industry that has been the cornerstone of EVERY war the US has been involved with, even the war in Ukraine. Steel is the backbone of the military used in ships, tanks, aircraft, munitions and so much more! There is NO WAY congress would sign off on this no matter who the president is.

Huge investment, many jobs created, modernisation. What's not to like about the offer from Japan?

US Steel - and whichever party wins in November - had better accept the offer, lest the corporation go extinct in the face of Chinese competition.

JJEToday 04:11 pm JST

This investment is a classic false flag to divert from their objective:

They just want to asset strip the joint and put US Steel into streamlined, managed decline to give the Japan steel industry, which faces an uncertain future in a crowded market, more room to breath.

That's why the unions are involved to say that isn't how business is done in countries with active unions.

Investment will never be made. It will be broken promises, asset stripping, managed decline, mass layoffs and Rising Sun all over.

Reality is the US needs to make a stark choice: allow its steel industry to go under or Japan's.

Surely, they wouldn't rubber stamp the former.

They just want to asset strip the joint and put US Steel into streamlined, managed decline to give the Japan steel industry, which faces an uncertain future in a crowded market, more room to breath.

No intelligent business owner is going to throw nearly 3 billion dollars in the garbage.

Subtle (but not intelligent) bribery.

Steel production is critical to national security.

The United States should not allow foreign control of any of its steel production infrastructure and capability.

Full stop.

u.s. is 4% of global steel production. protective tariffs have kept the price of u.s. steel 55% higher than global prices, the high profits go to executive salaries and investors, not the workers. the tariffs allowed the industry to continue without investment in new technology.

nippon steel wants to upgrade the production to supply the u.s. car market.

a recent acquisition by a domestic steel supplier and domestic consolidation did exactly as predicted - it raised sheet steel prices to car manufacturers.

the threat to national security is always from within.

Steel production is critical to national security.

US steel is uncompetitive. It can't compete with Japan, never mind China. Are you going to subsidise it forever? That will never work, it will just make it less and less competitive.

Better they work with a Japanese company now than a Chinese or Indian one ten years down the line. At least they are an ally, or according to some here, a 'vassal state'.

Take the deal.

@Fighto & ClipperyClop

I agree, this is a good deal.

Omg typo, apologies @ ClippetyClop

Not sure why we can’t edit comments or am I the only one not knowing how to

I’m not an expert in the steel industry or trade and economics, but why aren’t any domestic investors putting their money on the table?

Harking back to the article about the economics of the 1930s, here's more evidence of protectionism raising its ugly head.

Nippon Steel and other Japanese steelmakers are urging Tokyo to consider curbing cheap steel imports coming from China, the world's biggest steel producer, to protect the local market, Vice Chairman Takahiro Mori said in an interview.

As Nippon Steel tries to close its acquisition of U.S. Steel (X.N), key to its global expansion, Mori, who is the lead negotiator for the deal, also said he gained support of Minnesota Governor Tim Walz for the takeover when they met in June.

https://apple.news/AYdWaDiWARLSw2932Wxq_Eg

US steel is uncompetitive. It can't compete with Japan, never mind China. Are you going to subsidise it forever? That will never work, it will just make it less and less competitive.

Better they work with a Japanese company now than a Chinese or Indian one ten years down the line. At least they are an ally, or according to some here, a 'vassal state'.

Take the deal

True, I agree.

I’m not an expert in the steel industry or trade and economics, but why aren’t any domestic investors putting their money on the table?

The private equity vultures are undoubtedly waiting in the wings to run up debt, sell the valuable parts and leave a husk for the bankruptcy courts to figure out.

"...to give the Japan steel industry, which faces an uncertain future in a crowded market, more room to breath."[sic]

Speaking of typographical error; what is the difference between 'breath' and 'breathe'?