Joesicak
Update at 6:30 p.m.: Add Harris’s comments:
Vice President Kamala Harris is US Steel’sNew York Stock Exchange: X) will have to remain domestically owned and operated during its visit to Pittsburgh on Monday, a potential hurdle for Nippon Steel’s (OTCPK:NISTF) planned $14 billion deal.
Harris made it Remarks at a Labor Day union event in Pittsburgh. Pittsburgh is the headquarters of U.S. Steel (X) and the United Steelworkers union have strongly opposed the deal.
“U.S. Steel is a historic American company, and it is critical that our nation maintain a strong American steel industry,” Harris said. An event is taking place in Pittsburgh on Monday evening. “And I couldn’t agree more with President Biden. U.S. Steel must be American-owned and American-operated. And I will always have the support of American Steelworkers.”
President Joe Biden has said for months that he opposes the $14 billion acquisition of U.S. Steel (X), but has never publicly called for blocking the deal.
Harris’s comments appear to contrast with her running mate, Minnesota Gov. Tim Walz, who reportedly told a Nippon Steel (OTCPK:NISTF) executive in June that he supported the deal. The comments came before Walz became Harris’ running mate.
“We are committed to a deal with Nippon Steel that is the best deal for our employees, shareholders, communities and customers,” a U.S. Steel spokesperson said in a statement to Seeking Alpha. “Partnering with Nippon Steel, a close ally of ours from Japan and a longtime investor in the United States, will strengthen the American steel industry, American jobs, American supply chains and enhance the competitiveness and resilience of the American steel industry relative to China. In Pennsylvania alone, U.S. Steel employs nearly 4,000 hardworking men and women. This is the best deal for them and the communities where they live.”
Harris opposes the massive steel deal, which has never been mentioned as a presidential candidate. Former President Donald Trump repeatedly said last month that he would block it if he were elected to the nation’s top office.
“We’re going to stop Japan from buying United States Steel,” Trump said at a campaign rally in Pennsylvania last month. “They shouldn’t be allowed to buy it. We’ve got to make it work. We’ve got to make it work. You don’t want to sell U.S. Steel.”
Harris’ Pittsburgh comments come just days after Nippon Steel (OTCPK:NISTF) announced additional project investments at U.S. Steel’s (X) Mon Valley Works and Gary Works facilities, pledging to invest $1.3 billion in U.S. Steel plants.
“Nippon Steel’s announcement that it will invest approximately $1.3 billion in the U.S. Steel union-represented facility, in addition to its previously announced $1.4 billion capital investment, further demonstrates its unwavering commitment to U.S. Steel and all of its stakeholders,” U.S. Steel CEO David B. Burritt said in a statement Monday.
