US Steelworkers' union criticizes Nippon Steel's proposal for lack of long-term commitment
Source: Reuters
January 2, 2025 6:50 PM EST Updated 12 hours ago
Jan 2 (Reuters) - The United Steelworkers union expressed concerns about Nippon Steel's (5401.T) latest proposal that gives the U.S. government veto power over any potential reductions in U.S. Steel's production capacity, if they get the approval to merge.
The union, which has opposed U.S. Steel's merger with the Japanese steel giant, said Nippon's offer fails to commit to sustaining production over the long term or enhancing domestic capacity in integrated facilities.
"Protecting capacity only means moth-balling our equipment, allowing it to rust away to the point that it is no longer feasible to re-start," the union said in a statement on its website on Thursday. The proposal "is nothing but a "Hail Mary" pass destined to fall to the ground," it added.
On Tuesday, reports said Nippon Steel made a proposal to give the government a final say over any potential production cuts, as part of its efforts to secure President Joe Biden's approval for acquiring the American steelmaker. In 2023, Nippon clinched the deal to buy U.S. Steel at a hefty premium, but the merger has since faced opposition from the powerful Steelworkers' union as well as politicians.
Read more: https://www.reuters.com/markets/deals/steelworkers-union-criticizes-nippon-steels-proposal-lack-long-term-commitment-2025-01-02/