Potential Harris running mate opposes Nippon Steel takeover deal

WASHINGTON

Pennsylvania Gov Josh Shapiro on Tuesday voiced his opposition to Nippon Steel Corp’s proposed acquisition of United States Steel Corp., saying he has “serious concerns” over the plan.

Shapiro is among several Democrats across the United States who have been mentioned as being on Vice President Kamala Harris’ shortlist as she chooses a running mate for the upcoming presidential election.

The popular governor told a press conference following a tax event in Philadelphia that he will review any business deal through “the prism of how does it impact Pennsylvania workers,” as the state has grown thanks to U.S. Steel and other industrial manufacturers.

“I have serious concerns about the deal that has been put forth,” he said. “Speaking from a state perspective as governor, if the U.S. Steel workers aren’t happy with this deal, which they are not, I’m not happy with this deal.”

U.S. Steel, founded in 1901, is headquartered in Pittsburgh, Pennsylvania, a key battleground state in the Nov 5 election.

Both President Joe Biden, who abandoned his bid for a second term and endorsed Harris to be his successor more than a week ago, and Donald Trump, the Republican nominee in the election, have backed U.S. Steel’s unionized workers in their strong opposition to the deal.

The Japanese and U.S. firms believe the merger, creating the world’s third-largest steelmaker by volume, would benefit them. A large majority of U.S. Steel shareholders have also already approved the $14.1 billion deal.

But since the planned all-cash transaction was announced in December, United Steelworkers International has spoken against it, turning it into a sensitive political issue.

Biden, who needed to secure support from labor unions for the presidential election, said multiple times earlier this year that the iconic steelmaker should be domestically owned.

On Tuesday, Shapiro also said, “What’s been put forth on the table is not something that would enjoy my approval, and I’m going to continue to stand directly side-by-side and locked-arms with U.S. steel workers, the very people who have built this commonwealth and this country.”

“They deserve real respect,” added the governor, who attended the press conference with Treasury Secretary Janet Yellen.

The acquisition plan needs to be approved by the Committee on Foreign Investment in the United States, which is in charge of examining certain foreign investment transactions in U.S. firms and determining whether they pose national security threats.

The committee, also known as CFIUS, is chaired by Yellen, who said in April she accepted Biden’s view that U.S. Steel should remain in American hands.

Asked where the merger plan’s review stands now, she said CFIUS will look at any transaction from a national security perspective and try to make the right decision, but that she is “not able to talk about the specifics.”