Biden blocks $14 billion acquisition of US Steel by Japan’s Nippon Steel |

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McCall insisted that U.S. Steel — which is profitable and reported $1.8 billion on its balance sheet — has the financial wherewithal to make the company strong. Nippon Steel's offer was a "huge windfall" for executives and investors, but not for America or workers, McCall said.

However, U.S. Steel has warned that, without Nippon Steel's cash, it will shift production away from its aging blast furnaces to cheaper non-union electric arc furnaces and move its headquarters out of Pittsburgh.

For its part, Nippon Steel had said it is best positioned to help American steel compete in an industry dominated by the Chinese and to invest billions in United Steelworkers-represented facilities, including the company's aging blast furnaces in Pennsylvania and Indiana.

It pledged to protect U.S. Steel in trade matters, and promised not to import steel slabs that would compete with the blast furnaces.

Nippon Steel announced in December 2023 that it planned to buy the steel producer for $14.9 billion in cash and debt, and committed to keep the U.S. Steel name and Pittsburgh headquarters. Despite that, its proposal raised concerns about what the transaction could mean for unionized workers, supply chains and U.S. national security.

The announcement came during a tide of renewed political support for rebuilding America's manufacturing sector and followed a long stretch of protectionist U.S. tariffs that analysts say have helped reinvigorate domestic steel.

Nippon Steel waged a public relations campaign to consolidate support, even offering $5,000 in closing bonuses to U.S. Steel employees, a nearly $100 million expense.

A number of conservatives and business groups like the U.S. Chamber had publicly backed the deal, as Nippon Steel began to win over some Steelworkers union members and mayors in areas near its blast furnaces.

Nippon Steel was the world's fourth largest steelmaker in 2023, according to World Steel Association figures. U.S. Steel was 24th.

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