In a meeting room facing the century-old U.S. Steel plant, Takahiro Mori offered his vision for the plant's next chapter under a new owner. Flanked by steelworkers and city leaders, the vice chairman of Japan's Nippon Steel last week pledged to invest nearly $950 million in U.S. Steel's largest mill. Nippon Steel also offered bonuses to all U.S. Steel employees, amounting to $20 million for workers in Gary.
Mori was winning the room at City Hall. He hasn't had the same luck in Washington, D.C., where political leaders control the deal's fate.
A year has passed since Nippon Steel announced that it would buy U.S. Steel for $14.1 billion. The takeover bid has run into opposition from politicians and union leaders as well as skepticism from investors. Now the steel market is weak, and the clock is winding down on a national-security review that could precede President Biden's blocking the deal.
While Biden has yet to block the takeover formally, the White House last week reiterated his position that U.S. Steel should be domestically owned and operated. President-elect Donald Trump has similarly rejected the Pittsburgh-based company's being sold to a foreign company, warning Nippon Steel in a Dec. 2 social-media post: "Buyer Beware!"
Investor sentiment in U.S. Steel is souring. Shares closed Wednesday at $30.98, the lowest level since September and well below the $55 price that U.S. Steel shareholders approved in April.
If the deal collapses, U.S. Steel Chief Executive Officer Dave Burritt has warned that the company can't match Nippon Steel's planned investments, and would likely close plants and move its headquarters out of Pittsburgh.
Union opposition
Denne historien er fra December 20, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 20, 2024-utgaven av Mint Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
How Bhansali Elevates the First Encounter
An excerpt from a new book on the Hindi director considers the importance of first sightings in Sanjay Leela Bhansali's cinema
From arrack to wine, a bar crawl across Sri Lanka
Cocktail bars in the island nation are drawing on local traditions and flavours to give a heady twist to familiar spirits
The Treasures of Nimrud Pieced Together Again
Archaeologists Have Been Reassembling Bas-Reliefs, Sculptures and Decorated Slabs
Only human-centred AI can charm humans to adopt it
The AI industry could learn from carmakers how to focus on the consumer and modify perceptions
How Emerging Economies Could Prosper in a Protectionist World
As manufacturing export success gets harder, they should focus on service exports. These are unlikely to face big trade barriers
The Asian Dream Is Waking Up To Realities Of Middle-Class Life
Asians are realizing that staying middle-class is not guaranteed
Lessons from the 75-year-old National Sample Survey
Its impressive history tells us much about innovation, autonomy and state-level data collection
Fix India's bond market to lift economic growth
As India's economy slows, we should revive public-private partnerships to attract private investment. But, for debt funding, we'll need to reform and invigorate our market for bonds.
We should let clarity prevail over nonsense: Here's a handy guide
We must use simple language, empathize with people, not take ourselves too seriously and be kind
Clear Goals and Discipline: How Small Investors Can Build Lasting Wealth
There is no one-size-fits-all, the answer will depend on your needs, personal preferences