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Here’s What People Are Saying About U. S. Steel’s Proposed Transaction with Nippon Steel Corporation (NSC)1

From government officials…

Rahm Emanuel
United States Ambassador to Japan
Dec. 18, 2023
“Nippon Steel and U. S. Steel announce ahistoric $14.9 billion transaction. These two iconic companies are defining the future of the key steel industry and forging a strong bond as they face a more competitive environment.While the USA and Japan have been the number one investors in each’s country for the past four years, today’s announcement will deepen those bonds.”
Former US Sen. for PA Pat Toomey
Carroll Township
Dec. 21, 2023
[U. S. Steel] “shareholders consist of Americans of all stripes. The teachers, firemen, truck drivers, who have 401(k)s and pension plans invested in companies including U. S. Steel. [...] This is good for the steel workers. This is good for steel production. This is good for the United States. The fact of the matter is that Nippon Steel would be obligated to follow al of the labor laws that anyone else is obligated to, including the negotiations over new contracts, which is very heavily regulated by the federal government…I think the union workers ought to be glad that a larger parent company with greater resources is going to be there to increase the likelihood that they stay viable. I think it’s a big mistake for the unions to conclude somehow they’re worse off when it’s not at all clear that that’s the case.”

From the analyst and investment community…

Bank of America analysts said,“X stated that NSC has committed to honor all labor agreements and would maintain X's iconic brand name. From an overall industry perspective, the deal would increase competition in the domestic market (especially auto/electrical steel) with no material offset from consolidation.”
December 18, 2023
Josh Spoores, steel analyst at CRU Group, told Yahoo Finance the announcement could be good news for buyers. Further consolidation of the US market would have increased prices and pushed manufacturers elsewhere, he said. The deal has the potential to keep the domestic market competitive, which could encourage manufacturers to keep producing in the US and employing US workers.
December 18, 2023
Morgan Stanley analysts said, “Given Nippon has stated it will honor all of U. S. Steel’s commitments with its employees, including all collective bargaining agreements in place with the unions, we believe the requirements for any transaction to take place will likely be fulfilled.”
December 18, 2023

in the media

In the media… “Japan reasonably thinks of itself asAmerica’s closest ally in Asia. It is the host nation of the largest number of US military outside the US itself and a gargantuan customer of American hardware. Japan has also recently proved its friendship many times over — most prominently by joining the US in imposing restrictions on exports of high-end semiconductor production equipment, and by directly helpingWashington rally sign-ups to the Indo-Pacific EconomicFramework trade deal.”
December 19, 2023
“…shareholders are not the only winners. The UnitedSteelworkers will have their contract honored and a good-faith bargaining partner in the combined U. S.Steel-NSC. Pittsburgh and Pennsylvania get to keep theU. S. Steel jobs that already were here, and our state will maintain its primacy in the American steel industry. Finally, up and down the steel supply chain, buyers will have a competitive marketplace that is not dominated by any one firm. As inflation continues to be a problem, a merger that will help keep prices down is good for consumers.”
December 19, 2023
“Jobs are staying in Pennsylvania instead of leaving. The iconic U. S. Steel brand will continue instead of fading away. The United Steelworkers will continue to represent the hardworking men and women in a combined U.S. Steel – Nippon Steel. Our allied supply chain will be strengthened and Chinese grip on the international steel market will be weakened. What’s not to like? ”
December 20, 2023
“… this deal may be the best outcome for what was once the world’s largest company, for the Pittsburgh region, and for the United States…Nippon has few operations in the US, so there are no serious antitrust concerns. For southwest Pennsylvania, it’s unlikely Nippon just dropped$14 billion — a huge 40% premium on the market value —just to shut down the Mon Valley Works. It is more likely that Nippon values owning an American integrated steel operation, maybe even more than U. S. Steel did. Nippon has also committed to making steel as cleanly as possible”
December 20, 2023
“The proposed transaction should easily pass muster. Large-scale capital investment by a Japanese company poses no danger to U.S. national or economic security, as the relevant agency — the Committee on Foreign Investment in theUnited States (CFIUS), chaired by Treasury Secretary Janet L. Yellen — has every reason to conclude...Japan is a U.S. allyand party to a mutual defense pact. The two countries cooperate on the production of microchips and other sensitive technologies.”
December 22, 2023
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Here’s What People Are Saying About U. S. Steel’s Transaction with Nippon Steel

There is broad agreement that the transaction with NSC will support customers, employees and communities

From government officials…

Wilbur Ross
Former United States Secretary of Commerce
Dec. 20, 2023
“Nippon Steel is a very high-tech steel company. If anything, they may have better technology than U. S. Steel.They’ve pledged to honor the labor contracts, which go through 2026, and they have pledged 0 carbon by 2050.They’re a very, very responsible company and it reminds me back some decades ago when I was at Rothschild.We represented the Rockefeller 34 trust when they sold Rock Center to the Japanese to Mitsui and everybody said, “Oh my God, the sky is falling. An American icon owned by the Japanese.” Well, you know what the consequences were? Nothing, no consequences, and I don’t think there will be any consequences of this.”

From the analyst and investment community…

John C. Tumazos, metals industry analyst at Very Independent Research, told Pittsburgh Tribune-Review the transaction will not trigger mass layoffs in southwestern Pennsylvania or encourage new owners to idle mills; instead, it will create new jobs, spark investment and invest heavily in upgrading existing facilities.”
December 23, 2023
Josh Spoores, steel analyst at CRU Group, said, “I do expect for them (NSC) to come and invest in some production lines in the U.S…I don’t think (those opposing the sale) are seeing the whole picture. I think they’re seeing the old, iconic image of U. S. Steel and not what it is today.”
December 23, 2023
James Pinkerton, political analyst, said, “The news that Nippon Steel wants to buy U. S. Steel is good news. If money talks, then this offer from a Japanese company speaks loudly. It’s a vote of confidence in American manufacturing, in American workers, and in the United States itself… Nippon Steel has pledged to honor collective bargaining agreements with the United Steelworkers union. So that’s good news for workers across Pennsylvania and other states.”
December 22, 2023

From Policy Experts…

Sanjay Patnaik
Director of the Center on Regulation and Markets at the Brookings Institution
Dec. 22, 2023
“I don’t see a compelling national security reason to block it because again, Japan is an ally. And actually,I’ve seen some information that if the deal goes through, the combined joint company could be a pretty good play on the world market, which would pose a counterweight to the Chinese steelmakers.”
William Chou
Japan Fellow at Hudson Institute
Dec. 22, 2023
“The sale protects American consumers. Had U. S. Steel merged with Cleveland-Cliffs, the new company would have dominated steel supplies for the auto industry and provided all the steel needed for electric-vehicle motors.The lack of competition would likely mean higher EV costs for consumers...Nippon Steel plans to maintain U.S.-based production, which will provide Americans with greater economic security.”

In the media

“The merger may enhance U.S. competitiveness. The $15 billion deal would create one of the world’s top three steel makers, and it’s a direct investment in U.S. manufacturing...Nippon Steel is likely to improve U.S. Steel’s operations and efficiency. The company headquarters will remain in Pittsburgh. Foreign capital investment in the U.S. is good for the economy and workers.”
December 22, 2023
“The acquisition of US Steel by Nippon Steel is a symbolic deal (both companies are after all named after their respective countries, ie “Nippon” means Japan). It is also symbolic in terms of competition in global capital markets, and in the pursuit of scale and efficiency in the steel industry, as well as in terms of economic security between Japan and the US and the western world.”
January 2, 2024
“The upsides of the deal outweigh the potential drawbacks. The acquisition would lend US Steel the backing of a financially stronger patron and create a steel giant able to hold its own against China’s behemoth producers. It’s highly unlikely that the Pentagon’s needs, which currently account for about 3%of total US steel shipments, would be in any way compromised. Even if Nippon Steel, a private company, were somehow beholden to the Japanese government, there’s little reason that Japan would want to weaken the US military at a time when it faces growing threats from China and North Korea”
January 2, 202
“U. S. Steel Merger Objections Rooted In A 1970s-Era Perspective”
By Ike Brannon
Ike Brannon is a former senior economist for the United States Treasury and U.S. Congress. He is president of Capital Policy Analytics, a consulting firm that does research on issues related to public policy and financial markets.
Read Full Op-Ed on Forbes
"Nippon Steel’s Purchase of U. S. Steel Will Improve The Economy”
By Wayne Winegarden
Wayne Winegarden is a Senior Fellow in Business and Economics at the Pacific Research Institute and the Director of PRI's Center for Medical Economics and Innovation whose research explores the connection between macroeconomic policies and economic outcomes, with a focus on the health care and energy industries. Mr. Winegarden has 25 years of experience advising Fortune 500 companies, medium and small businesses, and trade associations and received his Ph.D. in economics from George Mason University.
Read Full Op-Ed on Forbes
“Biden’s Foolish Snub of Nippon Steel”
By William Chou
Mr. Chou is a Japan Chair fellow at the Hudson Institute.
Read Full Op-Ed on The Wall Street Journal
“U. S. Steel and Nippon will be Good Partners”
By Steve Forbes
Steve Forbes is chairman and editor-in-chief of Forbes Media.
Read the Full Op-Ed on The Washington Examiner
“Let the watchdogs decide if a foreign U. S. Steel sale works for America”
By Marc L. Busch
Marc L. Busch is the Karl F. Landegger Professor of International Business Diplomacy at the Walsh School of Foreign Service, Georgetown University, and a global fellow at the Wilson Center’s Wahba Institute for Strategic Competition.
Read Full Op-Ed on The Hill
“The U. S. Steel Acquisition Is Good for America”
By Bruce Thompson
Bruce Thompson was a U.S. Senate aide, assistant secretary of Treasury for legislative affairs, and the director of government relations for Merrill Lynch for 22 years.
Read Full Op-Ed on Real Clear Markets
“Economic illiteracy and unseemly xenophobia hit the U.S. Steel deal”
By George F. Will
George F. Will is a columnist at The Washington Post who writes on politics and domestic and foreign affairs since 1977. He won the Pulitzer Prize for commentary In 1977 and is a regular contributor to MSNC and NBC News.
Read the Full Column on The Washington Post
“Why there's no reason to worry about the Japanese takeover of U.S. Steel”
By The Editorial Board
Read Full Editorial on The Washington Post
“Biden Shouldn’t Block the Nippon Steel Deal”
By The Editorial Board
Read Full Editorial on Bloomberg
“Multinationals urge Janet Yellen not to let politics stop US Steel deal”
By Aime Williams
Aime Williams covers foreign policy, trade and climate for the Financial Times.
Read the Full Article on Financial Times
“U. S. Steel-NSC Merger a good deal for workers, consumers and Pa.”
By Ryan Costello
Ryan Costello is a former member of Congress from Pennsylvania.
Read Full Op-Ed on Trib Live
“This is good for steelworkers, this is good for steel production, it’s good for the United States. I don’t get the argument against it.”
Pat Toomey
Former U.S. Senator for Pennsylvania
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“They've pledged to honor the labor contracts, which go through 2026, and they have pledged 0 carbon by 2050. They're a very, very responsible company…”
Wilbur Ross
Former United States Secretary of Commerce
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1 Nippon Steel North America (NSNA) is a wholly-owned subsidiary of Nippon Steel Corporation
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