The multibillion-dollar deal has the backing of U.S. Steel Corp. shareholders.
President-elect Donald Trump said on Dec. 3 that he would prevent the acquisition of U.S. Steel Corp. by Japan’s Nippon Steel Corporation.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company,” the president-elect said in a post on the social media platform Truth Social. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!”
The $14.9 billion deal to buy U.S. Steel was unveiled in December last year. If the transaction goes through, it would make U.S. Steel a wholly owned subsidiary of Nippon Steel.
The Japanese corporation had offered an all-cash deal, with shares priced at $55, a 40 percent premium at the time. U.S. Steel was trading at almost $41 by the end of Monday.
In 2018, the Trump administration slapped 25 percent tariffs on imported steel via a legal provision that allows U.S. presidents to curb imports if they pose a threat to national security.
While the tariff was challenged by a New Jersey-based steel importer, the U.S. Court of International Trade sided with Trump, saying it was within his presidential authority to implement tariffs.
As part of the deal, the Japanese company agreed to retain the U.S. Steel name as well as the Pittsburgh headquarters once the takeover was complete. It also committed to honoring the employee contract agreements that U.S. Steel has with the United Steelworkers (USW) union.
Trump had opposed the deal back in January this year. After meeting with the Teamsters labor union president, Trump called the transaction a “terrible” deal and said he would “block [the deal] instantaneously” in his second term.
According to data from the World Steel Association, Nippon Steel was the fourth-largest steel-producing company last year, with U.S. Steel in the 24th position.
The multibillion-dollar deal has the backing of U.S. Steel shareholders. During a vote on the issue, 98 percent of shareholders supported the merger.
