Kamala Harris to Oppose U.S. Steel Takeover Bid
Vice president visiting company’s hometown of Pittsburgh for Labor Day, as Nippon Steel works to shore up deal support
Vice President Kamala Harris is planning to voice her opposition against Nippon Steel’s 5401 -0.85%decrease; red down pointing triangle pending purchase of U.S. Steel X -1.69%decrease; red down pointing triangle, adding another high-profile critic to the deal initially reached in December.
The Democratic presidential candidate is visiting Pittsburgh for the Labor Day holiday and is expected to say at an event that U.S. Steel should remain domestically owned and operated, according to a Harris campaign official. Her stance appears to mirror President Biden’s position on the purchase.
Biden in March signaled his opposition to the deal without explicitly saying he would block Nippon Steel’s $14.1 billion purchase. Former president and Republican nominee Donald Trump has said he would stop the deal if he wins a second term. Several members of Congress, including Republican vice presidential nominee Sen. JD Vance, have also said they are opposed to the deal.
The United Steelworkers union has steadfastly opposed Nippon Steel, arguing that the company hasn’t provided sufficient commitments to keep the union-represented mills open and guarantees to honor U.S. Steel contract with the union.
Nippon Steel has said it accepts all the terms and obligations of U.S. Steel’s existing contract with the union that runs until 2026. The company has said it would also refrain from layoffs through the life of the contract.
Nippon Steel has pledged a big infusion of investments in U.S. Steel’s aging plants in Gary, Ind., and outside of Pittsburgh. The Japanese company last week nearly doubled its spending commitments for U.S. Steel’s oldest plants to $2.7 billion over the next several years, aiming to counter anxiety from employees and municipal leaders that Nippon Steel would close the mills.
Leaders of the steelworkers union dismissed the additional investments unless the commitments are included in the union’s contract. “Nippon talks a big game, but at the end of the day, a press release is not a contract,” David McCall, the union’s international president, said in a statement.