President Joe Biden‘s economic advisors have reportedly emphasized a commitment to safeguarding union jobs and domestic manufacturing in the U.S. steel industry, suggesting that Nippon Steel Corporation NPSCY may need to enhance its support for organized labor in order to finalize the United States Steel Corporation X acquisition.
The creation of the world’s second-largest steel company through a $14.1 billion deal faces review by the Committee on Foreign Investment in the United States (CFIUS), reported Bloomberg.
While not explicitly addressing Nippon Steel’s case, the statements were made on Friday, prompted by questions about it.
Also Read: White House Expresses Concern Over $14.1B US Steel Deal With Japan’s Nippon Steel
The outcome has implications for Biden’s reelection bid, Bloomberg added.
Though the firms have committed to upholding agreements with the United Steelworkers union, objections have arisen, the report read.
Biden’s allies, notably Pennsylvania senators, have urged him to halt the deal for job protection.
Lael Brainard, National Economic Council Director, refrained from commenting on the review details but stressed worker welfare as a key consideration, the report added.
Under the leadership of Treasury Secretary Janet Yellen, the CFIUS panel holds the authority to approve, modify or reject the deal based on national security concerns, and present it to Biden for a final decision.
Friday’s remarks underscore the election-year nuances surrounding the review, especially considering Biden’s anticipated November face-off with Republican frontrunner, former President Donald Trump.
The companies anticipate the deal’s closure in the second or third quarter, contrasting with insider insights suggesting a potential year-long process.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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