US Steel CEO says company likely to close steel mills if proposed $14B sale to Nippon Steel falls through

[groundloop]

Source: Fox Business

The CEO of U.S. Steel is warning that the company will likely have to close steel mills if its pending $14 billion acquisition by Nippon Steel falls through.

U.S. Steel CEO David Burritt told The Wall Street Journal in an interview that Nippon Steel's pledge to invest $3 billion to update U.S. Steel's Mon Valley Works in Pittsburgh and a mill in Gary, Indiana, is needed for the company to be economically competitive and to keep workers employed. Burritt said the investment won't happen if the deal collapses.

"We wouldn't do that if the deal falls through," Burritt told the Journal about the investment. "I don't have the money."

Burritt's comments come as Vice President Kamala Harris, the Democratic presidential nominee, announced her opposition to the proposed merger on Monday — aligning her views with President Biden. Harris' electoral rival, former President Trump, said in February that he would block the proposed merger if elected. The United Steelworkers union has also opposed the deal.

Read more: https://www.foxbusiness.com/economy/us-steel-ceo-says-company-likely-close-steel-mills-proposed-14b-sale-nippon-steel-falls-through

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Typical corporate talk..... give us our way or we'll pitch a hissy fit, and by the way, it's not our fault.

[former9thward]

1. Who do you think should own U.S. Steel?

[Frasier Balzov]

2. U.S. government should take it through eminent domain.

And then gradually bring it back into private investor hands while retaining a controlling interest.

[former9thward]

6. Eminent domain does not allow that.

Is there another law you think they can use? Truman tried to take over the steel mills and the U.S. Supreme Court said no.

[Frasier Balzov]

7. Take it from the Defense Department then.

If the concern is one of national security over U.S. access to the products thought to be in jeopardy.

And have the Commerce Department kick in something too.

And use Superfund money if any polluting has been going on.

Make a tender offer and keep sweetening it until the foreign interest is outbid and goes away.

[former9thward]

8. How would U.S. access to products be in jeopardy?

1) You can't move steel mills. 2) Japan is an ally. 3) All major companies are owned by global investors.

[Frasier Balzov]

9. I didn't realize you don't see it as a threat.

A basic industrial material controlled by a foreign interest is what underlies concern about the acquisition.

Far be it from me to amplify worry which you believe is unreasonable in the first place.

[Volaris]

16. This. If he 'needs' a 3B dollar investment, then the feds should offer 5,

Theres nothing in the US Constitution that forbids the Federal government from owning (or buying) any business of any type, as long as Congress is willing to front the money.

[Basso8vb]

3. Bullshit

[uncle ray]

4. Breaking: US Steel CEO says he doesn't know how to CEO.

[ificandream]

5. I bet Trump will change his mind on opposing this one.

[Wonder Why]

10. Here's what salary.com says of the CEO's compensation.

Compensation for CEO from salary.com

[INdemo]

11. ArcelorMittal along with Nippon Steel

Own the Steel Mills in Indiana and I think probably Youngstown steel in Ohio and maybe Illinois
I worked for a maintenance contractor at the mills in Indiana. All the Plant managers and and Dept heads were all American Over the period of 20 years I might have seen a Japanese Exec observing our work maybe twice
The US Steel plant in Gary Indiana has been claiming it was closing for years.

[yardwork]

12. Gotta protect those C suite salaries.

[Martin68]

13. Xenophobic opposition to Japan's bailout of US Steel is bad for America.

[Warpy]

14. Years of stock buybacks and ballooning executive pay packages

instead of upgrading equipment have left them uncompetitive in the world market.

Maybe the Japanese will be more interested in capital improvements than milking a cash cow.

Expect to see more strategic industries being owned by foreigners.

[droidamus2]

15. My question is

How much does that CEO make if the deal goes through?

[Javaman]

17. and we are to believe the CEO who would make bank in this deal? nt

[oldsoftie]

18. Isnt trump against the merger too? nt