U.S. Steel Being Forced Out Of America’s Hands

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(PartiallyPolitics.com) – Lawmakers from both parties are pushing against Japanese Nippon Steel Corporation’s (NSC) acquisition of U.S. Steel for $15 billion. As they have pointed out this deal could end up harming national security and could undermine steel working jobs by moving them to states with lower wages. This would also be harmful to the U.S. industrial capacity.

On Tuesday, Republican Senators sent a letter to Janet Yellen, the Treasury Secretary pushing for the sale to be blocked by the Committee on Foreign Investment in the United States (CFIUS). In the letter Sens. Marco Rubio (R-Fla.), Josh Hawley (R-Mo.), and JD Vance (R-Ohio) stated that the committee needed to block the acquisition of U.S. Steel by a company that is so closely allied with a foreign state. The committee is chaired by the Treasury secretary and has the capacity to block U.S. businesses from being sold to foreign firms in cases where the acquisition could be viewed as harmful to U.S. national Security.

The senators have noted that the deal was only focusing on shareholders making money and it did not consider what the economic implications of this move would be. As they pointed out the transaction was not the product of careful deliberation of stakeholder interests, but instead was focused on ensuring the maximum returns for shareholders.

Democrats have also opposed the acquisition pointing out that it would allow the fourth-largest steelmaker to take over the 27th-largest one. Sen. Joe Manchin (D-W.Va.) in his statement noted that this would threaten both the steel industry in the United States as well as the country’s national security.

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