Shares Of US Steel Melt After Kamala Harris Opposes Nippon's $15BN Buyout Deal
US Vice President and Democratic presidential candidate Kamala Harris visited Pittsburgh for the Labor Day holiday with President Biden. There, she declared that United States Steel should remain domestically owned and operated, yet another high-profile critic of US Steel's proposed sale to Japan's Nippon Steel.
"US Steel is a historic American company, and it is vital for our nation to maintain strong American steel companies," Harris told the audience at Union Hall in Pittsburgh, where US Steel is headquartered.
She said, "I couldn't agree more with President Biden — US Steel should remain American-owned, and American-operated. And I will always have the backs of America's steelworkers."
Harris commented on the Nippon Steel deal while visiting Pennsylvania on Monday. The state has become a critical battleground area as she is attempting to shore up support for blue-collar workers ahead of the November election.
"I will continue to count on the strength, the determination, and the hard work of the leaders in this room to knock on doors, to get folks to the polls and, bluntly put … to help us win Pennsylvania," Harris told the crowd.
5. 🇺🇸 KAMALA STANDS WITH U.S. STEEL
— Mario Nawfal (@MarioNawfal) September 3, 2024
"U.S. Steel is a historic American company, and it is vital for our nation to maintain strong American steel companies.
I couldn't agree more with President Biden — U.S. steel should remain American-owned and American-operated." pic.twitter.com/OSne5zLbST
Harris has revealed she is essentially a mirror image of Biden - not shocking whatsoever - and will follow the president's pro-union footsteps. Her campaign's block of Nippon Steel's US Steel bid is identical to Biden's.
Nippon's planned $15 billion acquisition of US Steel has faced bipartisan political backlash since the deal was announced in late 2023. The Japanese company has conducted a bold lobbying campaign in recent months to ensure the deal goes through amid concerns about a faltering steel industry in the US.
Despite the critics, Nippon executives remain "confident" that its "acquisition of US Steel will revitalize the American steel rustbelt, benefit American workers, local communities and national security in a way no other alternative can."
Meanwhile, Republican nominee and former President Donald Trump has also vowed to block the transaction. This is yet another policy that Harris closely aligns with Trump on.
In markets, shares of US Steel in New York were 6% lower in premarket trading around the mid-point of the $35 handle.
If US Steel's headquarters weren't based in a critical swing state and didn't have large production facilities in the Pittsburgh area, Harris would likely have little to no interest in this.