Dec. 19 (UPI) — Federal and state Pennsylvania lawmakers sounded off against an announced $14.9 billion sale of U.S. Steel to Japanese company Nippon Steel Corp., with some vowing to fight the deal.
Nippon Steel said on Monday it was purchasing U.S. Steel as a wholly-owned subsidiary for $55 per share, a 40% premium of the U.S. Steel’s closing stock price on Dec. 15.
Appearing to be caught off guard by the announcement, condemnations came from Sens. John Fetterman, D-Pa., and J.D. Vance, R-Ohio.
“It’s absolutely outrageous that U.S. Steel has agreed to sell themselves to a foreign company,” Fetterman said in a video on the roof of his Braddock, Pa., home, across from U.S. Steel’s Thompson plant.
“Steel is always about security, both our national security and the economic security of our steel communities. I am committed to doing anything I can do, using my platform and my position, to block this foreign sale.”
Vance said U.S. Steel is an iconic symbol for not only Pittsburgh but for the state and also pledged to stand in the way of the sale.
“U.S. Steel announced the sale by celebrating the ‘certain and immediate value’ to be delivered to its shareholders,” Vance said. “But rest assured that I will interrogate the long-term implications for the American people, and I will do everything in my power to protect the future of our nation’s security, industry and workers.”
The sale also brought bipartisan opposition in the Pennsylvania statehouse as well.
“We will continue to do all we can to maintain its presence where it belongs — Pittsburgh,” Republican State Senate President Pro Tempore Kim Ward said on the news of the sale.
Democratic said state Senate Minority Leader Jay Costa said he was concerned about the union membership at the plant and Nippon’s commitment to them.
“While this may be a good day for shareholders, the futures of our blue-collar families remain uncertain.”
United Steelworkers International President David McCall said in a statement that “neither U.S. Steel nor Nippon reached out to our union regarding the deal” which he said violated a partnership requiring U.S. Steel to notify the union of changes in control or business conditions.
“To say we’re disappointed in the announced deal between U.S. Steel and Nippon is an understatement, as it demonstrates the same greedy shortsighted attitude that has guided U.S. Steel for far too long,” McCall said. “We remained open throughout this process to working with U.S. Steel to keep this iconic American company domestically owned and operated, but instead it chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company.”
In August, U.S. Steel turned down an unsolicited takeover bid from Cleveland-Cliffs, a rival steel company, in a 50% cash, 50% stock deal that valued the company at $35 per share.
