David Burritt expressed confidence that the sale of the American manufacturer to a Japanese owner would close “on its merits” despite bipartisan backlash.
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David Burritt, chief executive of U.S. Steel, has warned that the company could lay off workers and relocate its headquarters outside Pennsylvania if the deal were blocked.
The chief executive of U.S. Steel said on Tuesday that the proposed takeover of the company by Nippon Steel of Japan would strengthen America’s national security, and he expressed confidence that the federal government would allow the deal to close despite bipartisan calls to block it.
Rebutting concerns from lawmakers and the steelworkers’ labor union about the transaction, the executive, David Burritt, argued that if the acquisition moved forward, the new company would benefit the U.S. economy and allow the United States and Japan to better compete with China in global steel markets.
“By the time we’re done doing all the analysis, it’s very clear that it strengthens national security, economic security and job security,” Mr. Burritt said. “This deal will close on its merits.”
His comments, made at the Detroit Economic Club, came as U.S. Steel has been facing a political storm over Nippon’s $15 billion takeover bid. Top Republicans and Democrats, including President Biden, Vice President Kamala Harris and former President Donald J. Trump, have said that the iconic steel maker should remain American owned and operated. The United Steelworkers union has accused Mr. Burritt of misleading workers and trying to get a lucrative exit package that would come from selling the company.
The transaction has also become tangled with swing state politics, as U.S. Steel is based in Pennsylvania, which could help to determine the outcome of the November presidential election.
The Committee on Foreign Investment in the United States, which is reviewing the agreement, has warned the companies that the merger could pose risks to American national security. The interagency panel has yet to make a recommendation to the president about whether the deal should be blocked.
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Source: nytimes.com
