General view of the exterior of the US Steel Clairton Coke Plant March 20, 2024 in Clairton, Pennsylvania. JEFF SWENSEN / GETTY IMAGES / AFP The merger project has been agitating the economic and political spheres in Japan and the United States for months. Joe Biden announced Friday, January 3 in a press release that he was blocking the planned takeover of the big American steel name US Steel by the Japanese giant Nippon Steel in the name of the country’s economic and security interests. This merger “would place one of the largest American steel producers under foreign control and pose risks to our national security and our essential supply chains,” justified the outgoing American president in the press release. He must cede power on January 20 to Republican Donald Trump, who also assured that he would prevent this friendly takeover, announced in December 2023. The United States is the world’s leading importer of steel, a dominated sector, overwhelmingly, by China. “I will never hesitate to act to protect the security of this country and its infrastructure,” insisted the 82-year-old Democrat, whom his advisers had warned of the possible diplomatic consequences of this blockage, according to the American press. In a statement, the USW metalworkers union said it was “grateful” for the US president’s decision to “maintain a strong steel industry in the country”. He also called on US Steel’s management to “make the decisions necessary to grow the company and keep it profitable.” Read also | Article reserved for our US Steel subscribers: “The steel industry has long been considered an essential instrument of sovereignty” Read later Nippon Steel says it is “dismayed” For its part, Nippon Steel reacted strongly, denouncing a “clear violation of due process of law.” “We are dismayed by President Biden’s decision, which reflects a clear violation of due process. Instead of applying it, the process was manipulated to push President Biden’s political agenda,” the group said in a statement, saying the US president “presents no credible evidence of risk to national security” . The markets reacted negatively to the White House’s announcement, with US Steel shares falling sharply by 7.92% to $30.02 at the opening on Wall Street. Questioned by Agence France-Presse (AFP), neither company had yet reacted. Joe Biden, great champion of American reindustrialization, has also worked for four years to relaunch the United States’ international alliances, particularly in Asia. He led particularly active diplomacy with Japan, seen as a strategic ally in the region. But he therefore chose, in this steel issue, to put domestic considerations first. According to the Washington Post, Joe Biden has decided to block this agreement worth 14.9 billion dollars (14.47 billion euros), despite the efforts made in recent days by some of his main advisers, who have warned that rejecting a major investment from a major Japanese company could harm relations between Washington and Tokyo. Le Monde Mémorable Test your general knowledge with the editorial staff of “Le Monde” Test your general knowledge with the editorial staff of “Le Monde” Discover A panel responsible for assessing the consequences of the possible takeover on the national security of the United States had refused to decide at the end of December, referring the question to the outgoing American president, who had fifteen days to decide. At the heart of the presidential campaign Joe Biden, like Republican President-elect Donald Trump, has already repeatedly expressed his opposition to this marriage worth nearly 15 billion dollars. Mr. Biden believes that the steel industry is of strategic importance for the United States, which is the world’s largest importer of steel. The operation found itself at the heart of the 2024 American presidential campaign, because it primarily concerns Pennsylvania, an electorally strategic state, which is also the cradle of steelworks in the United States. Also read the report | Article reserved for our subscribers US presidential election 2024: trip to Pennsylvania, the electoral battleground Read later The American metalworkers’ union vigorously opposed the merger, which Nippon Steel described on the contrary as a real lifeline for a industrial sector in difficulty and very weakened in Pennsylvania. The Japanese steel giant and US Steel have vowed to sue the government, saying it failed to follow proper procedures when reviewing the acquisition. Also read the column | Article reserved for our Steel industry subscribers: “Nippon Steel’s bet to overpay its prey to strengthen its American presence remains daring” Read later Le Monde with AFP Reuse this content
Author : News7
Publish date : 2025-01-03 22:17:58
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