DOJ opens formal investigation of U.S. Steel takeover

[BumRushDaShow]

Source: Politico

04/10/2024 05:18 PM EDT


The Justice Department has opened up an in-depth antitrust investigation of Nippon Steel’s $14.1 billion takeover of U.S. Steel, according to two people with direct knowledge of the matter.

The move escalates U.S. government scrutiny of the controversial deal, which has drawn fire from lawmakers, labor unions and others who argue the storied U.S. industrial titan should not be owned by a foreign company — even one based in Japan, one of America’s closest allies. It also follows a preliminary antitrust review previously reported by POLITICO.

Last month President Joe Biden highlighted those concerns in a highly unusual statement, saying it must “remain an American steel company that is domestically owned and operated.”

The United Steelworkers union — whom Biden and presumptive Republican presidential nominee Donald Trump are both courting on the campaign trail — opposes the deal, saying it puts U.S. jobs at risk. It couldn’t be learned exactly when the DOJ officially opened up the in-depth review, but it happened recently according to the people, who are not authorized to speak publicly.

Read more: https://www.politico.com/news/2024/04/10/doj-opens-formal-investigation-us-steel-takeover-00151615

[MotownPgh]

1. This new company is running ads on local

TV telling us that no jobs will be loss and this will be great!

[Stargazer99]

2. talk is cheap

[MotownPgh]

4. Yes it's obvious propaganda

I guess they don't want the union to make a stink.

[okaawhatever]

3. Foreign owners of US steel? No bueno. nt

[mahatmakanejeeves]

5. What happened to Cleveland-Cliffs?

Commodities
Automakers urge White House to oppose US Steel sale to Cleveland-Cliffs

By David Shepardson
March 29, 2024 1:52 PM EDT • Updated 13 days ago

WASHINGTON, March 29 (Reuters) - A group representing major automakers on Friday urged the White House to oppose any effort by steelmaker Cleveland-Cliffs to buy rival U.S. Steel, warning that a deal could result in anti-competitive pricing for vehicles. ... "A consolidation of the two companies would also place 65 to 90% of steel used in vehicles under the control of a single company," Alliance for Automotive Innovation CEO John Bozzella said in a letter, which was first reported by Reuters.

President Joe Biden said earlier this month that U.S. Steel, which has agreed to be bought by Japan's Nippon Steel for $14.9 billion, must remain a domestically-owned U.S. firm. Cleveland-Cliffs has said it would consider another bid for U.S. Steel if the deal with Nippon Steel falls apart.

"If the administration has concerns about the Nippon Steel deal, it must seriously consider alternative outcomes," said the letter from the group, which represents General Motors, Toyota Motor Corp, Volkswagen, Hyundai, and others. "One option that should not be on the table is an arrangement that creates a market concentration of domestic steel production in a single company." ... The White House, Cleveland-Cliffs and U.S. Steel did not immediately comment on the letter.

A combination of U.S. Steel and Cleveland-Cliffs would control "100% of the domestic electrical steel (e-steel) needed for electric vehicle (EV) motors and EV production," the automaker group said in its letter. ... It warned that a deal could "drive up the cost of both steel and e-steel, and ultimately increase the cost of finished vehicles (including EVs) for American consumers."

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[Stargazer99]

6. The American consumer is so damn dumb - there used to be a law that non American companies

could not own business in the United States but thanks to greed and willing stupidity here we are- does it ever pass any of your minds that if we get in a war and our supplier is no American that we could be in real trouble defending ourselves? That is why in the past there was a law regarding outside entities owning vital American businesses-but we are too dumbed down to even begin to think thanks to capitalism and greed and don 't tell me there might not be another war. Recently Elon Musk would not let the Ukraine's use his Starlink services to get a Russian boat, who in the hell elected him president?