The United Steelworkers union has raised concerns over Nippon Steel's latest proposal regarding its potential merger with U.S. Steel, specifically criticizing its provision that grants the U.S. government veto power over future production cuts, reports Reuters.
The union, which has staunchly opposed the merger, argues that Nippon's offer fails to commit to maintaining long-term production or expanding domestic capacity at integrated facilities.
"Protecting capacity only means idling our equipment, letting it rust to the point where it’s no longer feasible to restart," the union said in a statement on its website Thursday, dismissing the proposal as a "Hail Mary" pass unlikely to succeed.
Earlier reports revealed that Nippon Steel had proposed granting the government final approval on any potential production cuts as part of efforts to secure President Joe Biden's approval for acquiring U.S. Steel.
Nippon Steel reached a deal in 2023 to purchase U.S. Steel at a significant premium, but the merger has faced resistance from the union and politicians. In response, U.S. Steel maintained that the merger is the best path forward to ensure the company’s long-term success.
The Committee on Foreign Investment in the United States (CFIUS) has referred the decision to President Biden, who must decide by Jan. 7. If no action is taken, the merger will be automatically approved.
Nippon Steel has yet to respond to the union's criticism.
Bd-pratidin English/ Jisan
