On December 18, 2023, Nippon Steel announced that they had reached an agreement with U.S. Steel management to acquire the 122-year-old steel maker and iconic symbol of American industrial strength for $55 a share or $14.9B.

The United Steelworkers of America, who are affected most by this deal, were denied a seat at the table during negotiations with Nippon and are adamantly opposed to the sale.

Because Nippon is a foreign company and the steel industry has importance for national security, the deal requires approval of the CFIUS (Committee on Foreign Investment in the United States) chaired by Treasury Secretary Janet Yellen.

The sale has been met with bipartisan opposition. Those opposed include Republican Senators J.D. Vance, Marco Rubio, and Josh Hawley, as well as Democratic Senators Sherrod Brown, John Fetterman, and Joe Manchin. Due to pressure exerted by the Steelworkers, the White House has said "the deal merits serious scrutiny."

I am opposed to the sale for a number of reasons. For starters, the board and management of U.S. Steel essentially auctioned off the company to the highest bidder for the sole purpose of aggrandizing shareholders equity at the expense of the Steelworkers.

Second, the deal was struck behind closed doors without the participation of the United Steelworkers of America. This is a direct violation of the U.S. Steel-USW Basic Labor Agreement, which allows the union itself to bid for the company or assign their right to bid to another bidder.

Finally, the Steelworkers union has expressed grave concern over the sale of a storied Industrial asset vital to national security. This should concern all Americans as well.