How a rare $14 billion Japanese takeover deal got caught in US politics
Nippon Steel Corp. executive sat the one man who now appeared to have the fate of the $14 billion deal in his hands: David McCall, head of the United Steelworkers union.
The Japanese bid to take over United States Steel Corp. had widely been viewed as a slam-dunk offer — the only sticking point was winning over the union and, in turn, its political leverage. Mori assured McCall that Nippon Steel would offer commitments to invest more than $1 billion in the iconic American company while also promising no idling of plants and, most importantly to its workers, no immediate layoffs.
After extending his olive branch, Mori was met with eight minutes of silence as the union read the fine print before a reluctant McCall even responded. The talks dissolved in less than an hour, according to people familiar with the discussions.
Since that fateful March meeting, McCall and the union have continued to slam the deal over labor concerns, even while leaving the door open for more negotiations.
Unions don’t typically hold much sway in the world of takeover battles. But Nippon Steel’s bid to buy US Steel is now caught in an election year maelstrom as President Joe Biden and Donald Trump, in the wake of the union’s objections, have both publicly opposed the deal as they vie for blue-collar votes. The turmoil threatens to strain American relations with one of its top allies while underscoring how the politics of winning swing-state voters is dramatically influencing the
