By Diana Moss and Ed Gresser
As President Biden “runs through the tape” in his last weeks in office, he should take a few minutes to approve U.S. Steel’s purchase by Japanese firm Nippon Steel. Doing so would have myriad benefits and virtually no costs. The merger would help America’s heavy industry, support a core U.S. international alliance, and promote fair competition and supply for steel users in the United States. Approving the merger is, basically, the right thing to do.
Nippon Steel’s bid to purchase U.S. steel succeeded in late 2023. That is, at least as far as the money, the terms, and the agreement of U.S. Steel’s management and Board of Directors. The two companies agreed on a $14 billion deal that would bring new blue-chip Japanese technology and capital to a fading U.S. industrial icon and help preserve metal production in Pennsylvania.
Nonetheless, the Nippon-U.S. Steel merger has proved controversial. Fears about foreign ownership of a major American metals producer quickly generated opposition from both the Biden administration and the incoming Trump administration. The issues have also divided the United Steelworkers union, with union leadership opposing the deal while many Pennsylvania members support it.
