US Steel CEO says company likely to close steel mills if proposed $14B sale to Nippon Steel falls through
foxbusiness.comFOX Business Jeff Flock has the details from Doylestown, Pa., on Cavuto: Coast to Coast.
The CEO of U.S. Steel is warning that the company will likely have to close steel mills if its pending $14 billion acquisition by Nippon Steel falls through.
U.S. Steel CEO David Burritt told The Wall Street Journal in an interview that Nippon Steel's pledge to invest $3 billion to update U.S. Steel's Mon Valley Works in Pittsburgh and a mill in Gary, Indiana, is needed for the company to be economically competitive and to keep workers employed. Burritt said the investment won't happen if the deal collapses.
«We wouldn't do that if the deal falls through,» Burritt told the Journal about the investment. «I don't have the money.»
Burritt's comments come as Vice President Kamala Harris, the Democratic presidential nominee, announced her opposition to the proposed merger on Monday – aligning her views with President Biden. Harris' electoral rival, former President Trump, said in February that he would block the proposed merger if elected. The United Steelworkers union has also opposed the deal.
VP HARRIS JOINS TRUMP, BIDEN IN OPPOSING US STEEL-NIPPON STEEL MERGER
U.S. Steel's CEO is warning of potential mill closures if the company's sale to Nippon Steel falls through. (Photo by Thomas ONeill/NurPhoto via Getty Images / Getty Images)
U.S. Steel and Nippon Steel announced the $14.9 billion deal in December. Nippon, which is based in Japan, has previously invested in and operated steel facilities in the U.S. and said it plans to retain the company's name, brand and headquarters if the deal is completed.
Nippon also said that the transaction wouldn't trigger plant closures or any layoffs through 2026. Last week, the company said it
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