The U.S. Steel Acquisition Is Good for America

U.S. Steel is an historic American company, and it has agreed to an acquisition offer from an overseas buyer that will revitalize the company and the U.S. steel industry. The proposed combination with Nippon Steel will bring billions of dollars of new capital investment to U.S. Steel, providing resources to make the company stronger, more efficient, and more competitive global competitors. The new investment will help US Steel modernize, protect American jobs, and recharge Pittsburgh, PA, the Steel City.

Predictably, the politicians and the union bosses are objecting to this investment in America. For years, these same actors have been pushing anti-free market policies that have hampered the growth of the company and the U.S. steel industry. Protectionist policies, labor unrest, and government intervention have caused serious damage to the industry and its workers. Now these politicians want to block a foreign investment from one of our closest military and economic allies that will clearly benefit the U.S. and our domestic industry.

The U.S. steel industry once dominated world markets. But now, China is the largest steel producer in the world, with ten of the largest steel companies in the world accounting for more than half of the world's output. U.S. Steel was once the largest steel producer in the world. It now ranks 27th.  This deal would make the combined company the second biggest steel producer in the world. The Nippon President specifically pointed out that the new combination will provide a strong free market counterbalance to China’s steel dominance.

Free market policies like this competitive investment in America, are in the best interests of the company, its workers, and is communities. The union bosses and the politicians want to force U.S. Steel to merge with a rival U.S. company, a deal which would benefit the union more than U.S. Steel and its workers. U.S. Steel has already rejected such a merger, which would swallow up the iconic U.S. Steel brand. The Nippon Steel purchase would preserve the U.S. Steel name and brand, and keep the company headquartered in the Steel City.

The proposed merger has raised significant antitrust concerns, which could only be met by forcing parts of the company to be sold off or shut down. It would reduce competition in hiring and likely drive down workers’ wages and eliminate jobs. Concerns have also been raised by U.S. auto manufacturers that the merger would increase their costs and impact auto sales and jobs in the U.S. 

This combination with Nippon Steel would save American jobs with a major investment in America. The company has said it will honor the union’s existing contract with U.S. Steel, protecting the jobs, wages, and benefits of U.S. Steel workers. Nippon has operated in the United States for forty years, and already owns two unionized companies in the U.S. 

A CFIUS review would insure that this acquisition presents no national security or manufacturing concerns. Indeed, this acquisition will strengthen the U.S. manufacturing base. Japan is a close trading partner and ally, with more U.S. military bases and ports than any other country.

This deal is a plus for U.S. Steel and American manufacturers. One Wall Street steel analyst called the combination “a win for manufacturing in the U.S.,” which would encourage manufacturers to “stay here and produce more in the U.S.” It will pump billions of dollars in new capital investment into the company, increasing productivity with new and more efficient operations here in America. While the investment comes from overseas, the benefits will flow to an American company, American workers, and American communities.