U.S. Steel Company may close mills, relocate HQ if Nippon Steel sales fail

2024-09-05 05:58:24

(MENAFN) U.S. Steel has warned of potential significant changes if its proposed sale to Japan's Nippon Steel falls through. The company’s CEO, David Burritt, stated that the steelmaker might close its steel mills and potentially relocate its headquarters out of Pittsburgh, Pennsylvania, if the deal does not proceed. According to a report, Nippon Steel has committed to investing approximately USD3 billion into U.S. Steel’s aging facilities in Pittsburgh, a move deemed crucial for maintaining the company's competitive edge and protecting jobs.

Burritt expressed concerns about the future of U.S. Steel, emphasizing that without the investment from Nippon Steel, the company lacks the necessary funds to sustain its operations. The proposed USD14.1 billion acquisition has faced opposition from various quarters, including Democratic presidential candidate Kamala Harris, who recently suggested that U.S. Steel should remain locally owned and operated. President Biden, Republican presidential candidate Donald Trump, and several members of Congress have also voiced their opposition, and the United Steelworkers union has joined in dissent. Although Harris did not explicitly state she would block the deal, her remarks are interpreted as another potential hurdle for the transaction, particularly if she were to revise regulatory aspects if elected president.

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