Nippon Steel responds to President Biden opposing its U.S. Steel acquisition

March 15 (UPI) -- Nippon Steel said Friday its U.S. Steel purchase will deliver clear benefits to union workers and American national security. But President Joe Biden said it's vital U.S. Steel remain an American company.

Biden said in a statement Thursday: "It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated."

The United Steelworkers said in a statement they are in solidarity with President Biden's concerns, echoing Biden's position that U.S. Steel must remain an American-controlled company.

"Allowing one of our nation's largest steel manufacturers to be purchased by a foreign-owned corporation leaves us vulnerable when it comes to meeting both our defense and critical infrastructure needs," USW President David McCall's statement said. "The president's statements should end the debate: U.S. Steel must remain 'domestically owned and operated.' "

The Japanese company says their intention is to bolster U.S. Steel to ensure that the American company is successful for generations to come. Nippon Steel said it has provided "significant commitments to the USW."

"Our aim is to bolster and grow U.S. Steel in the U.S. market in a way that prioritizes its talented employees, and we have provided significant commitments to the USW in our continued efforts to reach a mutually agreeable resolution," Nippon Steel's statement said. "Nippon Steel will advance American priorities by driving greater quality and competitiveness for customers in the critical industries that rely on American steel while strengthening American supply chains and economic defenses against China."

Nippon Steel announced in December that it would buy U.S. Steel for $14.9 billion in an all-cash transaction. The Japanese company said it would honor collective bargaining agreements with the USW and expected the deal to close in the second or third quarter of 2024.

U.S. Steel President and CEO David B. Burritt said in December the deal recognizes the tremendous value of U.S. Steel and declared "this combination is truly Best For All."

The USW said they share Biden's concerns over "the sale's long-term implications for our economic and national security" and said union steelworkers are grateful for Biden's support.