Kevin O’Leary, the outspoken investor and business owner, has some strong words for President Joe Biden. O’Leary called Biden’s decision to block the almost $15 billion sale of U.S. Steel X to Japan’s Nippon Steel NPSCY a “mistake” and accused the government of “picking winners and losers, one specific company over another.”
The proposed deal, which had been in the works for over a year, involved Nippon Steel making significant investments in U.S. Steel to modernize its operations and ensure its survival amid tough foreign competition. But Biden stopped the deal because he was worried it could hurt U.S. security. This decision has led to many arguments.
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O’Leary was direct in his criticism. “You want to make America the number one destination for capital all around the world,” he said during a recent Fox Business interview. “You want them to bring their dollars and build plants and equipment in the United States because it's the most competitive and largest economy. You do not want to mess with that.”
Biden, on the other hand, stated that keeping U.S. Steel domestically owned is essential for national security and resilient supply chains: “Steel production – and the steelworkers who produce it – are the backbone of our nation.”
However, O’Leary argued that Nippon Steel had already pledged to invest up to $15 billion to upgrade U.S. Steel’s plants, create jobs and ensure steel production met American standards. This is exactly what you want, O’Leary said. “The number one export of the United States isn't steel, it's the American dream. You should always want your money here first.”
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After Biden's decision, U.S. Steel's stock value dropped. The company and Nippon Steel released a joint statement saying the decision was unfair and against the law. U.S. Steel's CEO, David Burritt, went further, calling the move "shameful and corrupt." He said Biden's actions insulted Japan, a close ally and gave an advantage to competitors in China.
Meanwhile, supporters of Biden's move, including the powerful United Steelworkers union, celebrated it, saying, “We're grateful for President Biden's willingness to take bold action to maintain a strong domestic steel industry.” Pennsylvania's Gov. Josh Shapiro also praised the decision and urged U.S. Steel to focus on keeping jobs in the state.
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Critics worry that blocking the deal could have bigger consequences. Nippon Steel had promised to keep U.S. Steel's headquarters in Pittsburgh, ensure Americans stayed in charge and prioritize steel production for U.S. needs. They said the deal would have helped U.S. Steel compete against cheaper steel from countries like China.
O’Leary remains adamant that the move hurts America's reputation as a destination for global investment. "This is counterproductive," he said. “I hope that actually Trump overturns this."
In his 2024 campaign, however, President-elect Donald Trump also rejected the deal and pledged to thwart it in favor of reviving U.S. Steel through tariffs and tax breaks.
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