'Must stay American-owned': Harris opposes Nippon Steel's $15 billion takeover bid of US Steel

US Steel ownership: United States Vice President Kamala Harris became the latest to join the opposition against the $15 billion deal for US Steel, proposed by Nippon Steel of Japan, citing the need to retain the iconic steelmaker in US hands. Comments from the vice president have brought more political hurdles toward the Japanese company.

On a stop in Pittsburgh, the Democratic presidential nominee said, "US Steel should be American-owned and American-operated," an applause-raucous comment. She will take one position and place it directly onto the same page as the United Steelworkers union by making such a statement, her opposition having come since the deal was announced last December. The Pittsburgh-based union has cited national security concerns, the likely negative impact on American jobs, and called into question assurances by Nippon Steel not to lay off workers or shut down plants.

Opposition from Politicians and the Union

The eight-month resistance to Nippon Steel's bid has gained broad political momentum as both President Joe Biden and former President Donald Trump, the Republican nominee, have frowned on the deal. Union officials have been holding their breath waiting to hear Harris's position on the matter, and she came out clearly in opposition, a maneuver to protect national security and union jobs.

Response of Nippon Steel

The growing opposition nonetheless seems not to sour Nippon Steel's confidence in what such a merger would achieve. In comments, the company reiterated a belief that the acquisition would strengthen US Steel-and consequently, the wider American steel industry. "We believe that a fair and objective regulatory review process will support this outcome," Nippon Steel said.

The Japanese manufacturer has also done much to appease them, including promises of billions of dollars in additional investment in US Steel's facilities. Last July, in a strategic move, Nippon Steel announced that it would be exiting a long-standing joint venture in China; the move could be seen as one that might temper potential regulatory hurdles from the US, possibly against the Japanese manufacturer.

Regulatory Hurdles Ahead

That acquisition is still under the review of the Committee on Foreign Investment in the United States, an interagency panel responsible to review the national security implications of foreign investments. The US and Japan might be the closest of allies, but a question still remains to be answered as to whether or not such a cross-border transaction would raise concerns over national security. The recommendation from CFIUS will be the most important, but the ultimate decision is to be made by the US president, who has the authority to block the deal.