A 'Mornings with Maria' panel reacts to US Steel CEO David Burritt's response to President Biden blocking their deal with Nippon Steel during a one-on-one meeting with Fox Business' Lydia Hu.
US Steel CEO blames President Biden for failing the US and emboldening foreign adversaries after his administration Proposed $14 billion acquisition block U.S. Steel by Japan-based company Nippon Steel.
U.S. Steel CEO David Burritt told Fox Business correspondent Lydia Hook in an interview Monday that Biden has proven to the world community that the U.S. has no regard for the rule of law in handling the now-defunct deal.
“We did everything right as a company with Nippon,” Burritt said. “We did everything right. The government failed us. They failed because they didn't follow the process. And we're going to right that wrong. They failed our workers. They failed our communities. They failed our country. They failed our country. did. Asia's best ally and they encouraged China to ignore the rule of law.”
Biden officially blocked Nippon's takeover of US steel
President Joe Biden blocked Nippon Steel Corp.'s $14.1 billion acquisition of United States Steel Corp. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
“CFIUS [The Committee on Foreign Investment in the United States] It's supposed to be robust and confidential, and we find it wasn't robust or confidential,” Burritt added. We respected the process, and it was a mistake we made. We owe due process, and it's a terrible blow to our employees. message and sends a terrible message to our best allies around the world that our country does not respect the rule of law.”
Before blocking it, Biden expressed opposition to the deal, arguing that US Steel should remain an American-owned and American-run firm. The Justice Department of the Biden-Harris administration investigated the deal on antitrust grounds, while the Committee on Foreign Investment in the United States (CFIUS) investigated the national security implications of the deal.
US Steel CEO says company will close steel mills if proposed $14B sale to Nippon Steel falls through
The decision to block it comes after Burritt publicly warned that if the firm acquisition Falling through, the company will likely be forced to close steel mills in Pennsylvania's Monongahela Valley and Gary, Indiana, which were slated to receive a $3 billion upgrade with cash added by Nippon after the sale closes. He said the investment, which is going through the deal, was necessary for the company to remain economically competitive with international rivals and to keep workers employed.
“If the deal goes through, we won't do it,” Burritt said The Wall Street Journal In an interview at that time. “I have no money.”
Burritt also indicated that if the Mon Valley Works were to close, the company would likely seek to relocate Headquartered in Pittsburgh to a location in the south, where an increasingly large part of the company's production has moved.
A U.S. flag flies from a light post in front of a Wheeling-Nippon Steel facility in Follansbee, West Virginia, U.S., on Friday, March 15, 2024. Nippon Steel Corporation sought to complete its $14.1 billion acquisition of United States Steel Corporation. Even after p (Photographer: Justin Merriman/Bloomberg via Getty Images/Getty Images)
Nippon Steel and US Steel slammed Biden's decision in a joint statement published Friday, writing that the president's involvement “reflects a clear violation of due process and the law.” The agencies also alleged the process was “rigged to advance Biden's political agenda.”
The statement also dismissed Biden's claims of national security concerns and announced that US Steel plans to take legal action against the government “to protect our legal rights.”
“The President's statement and order do not present any credible evidence on a national security issue, making it clear that this was a political decision. Following President Biden's decision, we have no choice but to take all appropriate steps to protect our legal rights,” they wrote. .
“We will never forgo doing business in the United States for the benefit of our domestic stakeholders,” the statement continued. “We continue to believe that a partnership between Nippon Steel and US Steel is the best way to ensure that US Steel, and in particular its USW-operated facilities, will be able to compete and thrive in the future – and we will work closely with stakeholders, including Japanese government officials and allies and partners of the United States can take all appropriate steps to protect our legal rights and secure that future.”
Former Secretary of State Mike Pompeo, who was hired by Nippon Steel last year to advise on the deal, disclosed His support for the acquisition That's before Biden's decision to block it. He also blamed the alleged politicization of CFIUS for the deal.
“Unfortunately, the committee that was responsible for assessing national security risks has become politicized,” Pompeo told “Kudlo.” “Instead of just looking at the national security risk, of course there's none — it's an ally, Japan, that's going to invest in America, make steel here in America, manufacture in America.”
Mike Pompeo, US Secretary of State (2018-2021) and Director, Central Intelligence Agency (2017-2018) speaks on stage at Fortune's Global Forum in New York City on America and the New Global Order. (Jamal Countess/Getty Images Fortune Media/Getty Images)
Pompeo urged the incoming Trump administration, which has also opposed the deal, “to reconsider for Pennsylvania workers, who are almost all in favor of moving forward with the deal, all but senior union liberal leadership…
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“It's good for the community,” he said, “and the Mon Valley.”
US steel Shareholders voted to approve A $14.9 billion deal with Nippon Steel in April, with 98% of shareholders voting in favor of the deal.
Eric Revell of Fox Business contributed to this report.