Cleveland-Cliffs voices support for decision to block U.S. Steel acquisition
Cleveland-Cliffs, one of the leading steel producers in North America, said in a news release Thursday, Sept. 5, it supports President Joe Biden’s decision to block a multibillion dollar deal that would have allowed Japan’s Nippon Steel to acquire U.S. Steel.
While the company is based in Cleveland, Ohio, and boasts 28,000 employees, it has local ties with the Butler Works facility in Lyndora.
Cleveland-Cliffs expressed the reasoning for its approval of the decision in a news release sent out on Thursday afternoon.
“We commend President Biden and the U.S. government for its reported decision to block foreign ownership of U.S. Steel by Japan’s Nippon Steel,” said chairman, president and CEO, Lourenco Goncalves in the statement. “The American steel industry plays a crucial role in safeguarding our national security. President Biden’s courageous move affirms our view that our industry is best served by American companies that are committed to the long-term prosperity of domestic manufacturing, supported by good-paying union jobs, under American ownership.”
The proposed $14.9 billion dollar deal between Nippon Steel and U.S. Steel was first agreed upon in December of last year.
Executives at U.S. Steel have warned the deal’s breakdown could put thousands of union jobs in jeopardy.
U.S. Steel, which is headquartered in Pittsburgh, is worth about $7 billion and employs about 20,000 people.
In a statement earlier this year, Biden hinted at a possible move to block the deal.
“U.S. Steel has been an iconic American company for more than a century and it should remain a totally American company,” Biden said in April. “American-owned, American-operated by American union steelworkers, the best in the world. And that’s going to happen. I promise you.”
