The United Steelworkers (USW) labor union has significantly stepped up its opposition against Nippon Steel Corp regarding the Japanese company's pursuit of acquiring U.S. Steel Corp. This conflict has intensified as both parties continue to present their positions and concerns in light of the pending decision from the Committee on Foreign Investment in the United States (CFIUS) anticipated by late December. The primary focus of the CFIUS review centers around assessing the potential national security implications associated with Nippon Steel's proposed buyout.
Amidst the escalating tension, Nippon Steel Vice Chairman Takahiro Mori expressed his confidence in securing approval for the acquisition before the inauguration of Donald Trump as the U.S. President in January. The looming uncertainty surrounding the deal was further exacerbated by Trump's campaign promise to block Nippon Steel's takeover bid, adding a political dimension to the already contentious situation. Conversely, the USW, represented by President David McCall, released a statement on November 14 vehemently opposing the buyout, asserting that it would adversely impact U.S. national security interests by potentially leading to the transfer of half-finished products from Japan to U.S. Steel for final processing, thereby endangering domestic jobs and production levels.
In response to CFIUS expressing concerns over national security implications, Nippon Steel requested a secondary review of the deal. Subsequently, on November 18, an official letter was dispatched under Mori's name to USW members, denouncing the dissemination of false information regarding the acquisition plans. The letter refuted claims of importing unfinished goods from overseas to complete production in the U.S. and pledged to safeguard the welfare and security of U.S. Steel workers. Additionally, it conveyed Mori's intention to engage in discussions with McCall to address the escalating tensions surrounding the proposed takeover; however, as of November 19, Nippon Steel had yet to receive a response from the USW's side. It is noteworthy that while garnering USW's support is crucial, the final decisions by CFIUS and the U.S. Justice Department, which is also investigating potential anti-trust violations related to the buyout, will not be directly influenced by the union's stance.