US Steel has plans to sell to a Japanese company – President Joe Biden says it’s not a good idea

March 15 – US Steel, a company based in Pittsburgh, PA, announced last December it planned to sell the company to Nippon Steel in Japan. 

Since then, there has been all kinds of talk about the rather controversial decision. 

Political officials and business insiders have all weighed in on the conversation. 

President Joe Biden came out yesterday to urge the company to remain in American hands. 

The stock market has also seen ebbs and flows in shares of US Steel, a company that has been in operation in America since 1901. 

The US Chamber of Commerce warned it’s not a good idea to politicize business deals. 

There’s been so much talk, a lot of people are wondering if the deal will still go through.

Attorney Clint Barkdoll suggested, “There may be enough pressure exerted at the federal level to try to stop it. Senators Casey and Fetterman, they are also open to it. The thinking is the US government does not want a foreign country controlling something like steel that’s so critical to US infrastructure and even the defense community.”

The offer made from Nippon Steel was a very big offer. 

Barkdoll continued, “The unions have differing views of this. There’s some argument that this merger, the buyout, has to occur to save US Steel, but yesterday is the first time Biden officially went on the record saying he is opposed to it, as well. There is some talk at the federal level whether it’s Congressional action or just regulatory action, that would put the brakes on this, perhaps limits on how much a foreign company would be allowed to own certain US companies including things like steel. Very uncertain at this point.” 

There are also some legal issues, as well. 

Barkdoll noted, “These are publicly traded companies. Can our government legally prevent someone from coming in and buying out a publicly traded company? So that’s a legal issue that might be in favor of Nippon, the Japanese company.” 

Pat Ryan of NewsTalk 103.7FM pointed out, “What about China and farmland? What about China buying up property near US army bases as well? All of a sudden they show up for this one. It’s kind of puzzling.”

Michele Jansen of NewsTalk 103.7FM added, “The saddest thing to me is this is the only way to save it. Can people not see the policies we’ve been following for quite a few years now under the Obama administration, and then arguably Trump was only in there for four years and very much distracted during his presidency, and then during the Biden administration. Why are we at the point where this is what it takes to financially save US Steel? To me, that’s the bigger issue and the sad issue because we’re going to keep falling down this hole where we have to let China bail us out and that is not safe to be from a major, number one enemy of the United States.”

Barkdoll said, “US Steel, they’re profitable. Their footprint has been declining for years, because we know that these steel wars are huge all over the world, steel imports that have come into the US but I go back to the fact that US Steel, they have that famous ticker symbol of X, that’s their ticker symbol. They’re publicly traded. So here’s a Japanese company, if they’re going on to the open market every day, buying hundreds of thousands or millions of shares, they are allowed to do that. If they get to a point that they have acquired a controlling interest, legally, that’s allowed. Now the question is, could the SEC, could Congress, other regulatory bodies step in and block it anyway? Well, there’s where these things could end up in court.” 

Jansen said, “I didn’t mean to suggest China was buying US Steel, but it’s the fact that we have to rely on foreign companies and this is just more signs that these policies are not working for American productivity and we have the government bailing stuff out. That’s not leading to productivity for any of our industries.”