Steel Industry Leader Confident in Merger Despite Presidential Opposition
David Burritt, CEO of U.S. Steel, expressed unwavering confidence in the company’s planned sale to Japan’s Nippon Steel, despite President Joe Biden’s public disapproval. In a recent interview, Burritt emphasized that the deal will strengthen national security, economic security, and job security.
Burritt countered concerns that the sale would compromise American ownership, citing Nippon North America’s 50-year history of doing business in the United States. He highlighted Nippon’s commitment to invest $2.7 billion in U.S. Steel’s struggling mills, which would save jobs and stimulate growth.
When questioned about why U.S. Steel couldn’t make these investments itself, Burritt explained that the company has a fiduciary obligation to its shareholders. He noted that Nippon’s superior resources, research, and technology would enable the company to make investments that U.S. Steel cannot.
The sale is currently under review by the Committee on Foreign Investment in the United States (CFIUS), which is assessing the national security implications of the transaction. Burritt expects a decision to be made after the U.S. presidential election in November.
Addressing potential national security concerns, Burritt assured that the agreement would adhere to U.S. trade laws and be managed by a board of directors comprising mostly U.S. citizens. He expressed confidence that the deal will ultimately be approved, citing its merits and benefits to the industry.
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