The “Mornings with Maria” panel reacts to U.S. Steel CEO David Britt saying President Biden blocked their deal with Nippon Steel during a one-on-one with FOX Business' Lydia Ho.
The CEO of American Steel blamed President Biden for America's failure and emboldening foreign enemies after his administration. Blocked the proposed acquisition of 14 billion dollars US steel by the Japanese company Nippon Steel.
In an interview with Fox Business reporter Lydia Ho on Monday, US Steel CEO David Britt said that Biden showed the world that the United States has no regard for the rule of law by his handling of the deal, which is now in effect. is gone
“We did everything right as a company with Nippon,” Britt said. We did everything right. The government failed us. They failed because they did not follow the process. And we will correct this mistake. They defeated our workers. They failed our communities. They defeated our country. They beat us. Best ally in Asia and they have emboldened China by not following the rule of law.
Biden officially blocked Nippon's takeover of US steel
President Joe Biden blocked Nippon Steel's $14.1 billion takeover of US Steel. (Justin Merriman/Bloomberg via Getty Images/Getty Images)
“CFIUS (Committee on Foreign Investment in the United States) is supposed to be strong and secretive, and we found that it was neither strong nor secretive,” Britt continued. And unfortunately, the President of the United States shamefully and shamefully tainted the CFIUS process from the very beginning. We respected the process and that was the mistake we made. workers and a terrible message to our best allies around the world that our country does not respect the rule of law.”
Before blocking it, Biden voiced his opposition to the deal, arguing that US Steel should remain an American-owned and operated company. The Justice Department of the Biden-Harris administration reviewed the deal on antitrust grounds, while the Committee on Foreign Investment in the United States (CFIUS) examined the national security implications of the deal.
His decision to block it came shortly after Britt publicly warned that if the company acquisition The company would likely be forced to close steel mills in Pennsylvania's Monongahela Valley and Gray, Indiana, which were slated to receive a $3 billion cash upgrade by Nippon after the sale is completed. He said that this investment, which depends on the completion of this transaction, was necessary for the economic competitiveness of this company with international competitors and to maintain the employment of workers.
“If the deal falls apart, we won't do it,” Britt said The Wall Street Journal In an interview at the time, “I have no money.”
Burritt also indicated that the company would likely look to relocate the Mon Valley Works if it were to close Headquartered out of Pittsburgh to a location in the south, where an increasing share of the company's production has moved.
A U.S. flag flies from a light pole in front of the Wheeling-Nippon Steel facility in Follansbee, West Virginia, U.S., on Friday, March 15, 2024. Nippon Steel Corp sought to complete its $14.1 billion acquisition of US Steel Corp. , even after P (Photo: Justin Merriman/Bloomberg via Getty Images/Getty Images)
Nippon Steel and US Steel blamed Biden's decision In a joint statement It was published on Friday and wrote that the president's involvement “reflects a clear violation of due process and law.” The companies also accused the process of being “manipulated to advance Biden's political agenda.”
The statement also rejected Biden's claims of national security concerns and said US Steel plans to take legal action against the administration to “protect our constitutional rights.”
The president's statement and order provide no credible evidence of a national security issue, making it clear that this was a political decision. ” they wrote.
“We will never stop pursuing business in the United States for the benefit of our domestic U.S. stakeholders,” the statement continued. We continue to believe that the collaboration between Nippon Steel and US Steel is the best way to ensure that US Steel, and in particular its USW-represented facilities, will be able to compete and thrive well into the future – and we closely We will cooperate with it. “Stakeholders, including Japanese government officials and allies and partners in the United States, should take all appropriate measures to protect their legal rights and secure this future.”
Former US Secretary of State Mike Pompeo, who Nippon Steel hired last year to advise on the deal, said. His support for the purchase Before Biden decided to block it. He also blamed the alleged politicization of CFIUS for tainting the deal.
“Unfortunately, that committee that was responsible for assessing national security risks became politicized,” Pompeo told Kudlow. “Instead of just looking at national security risks, of course there are none — an ally is Japan, which invests in America, makes steel here in America, manufactures in America.”
Mike Pompeo, US Secretary of State (2018-2021) and Director of the Central Intelligence Agency (2017-2018) speaks on stage about America and the New World Order during the Fortune Global Forum in New York City. (Jamal Countess/Getty Images for Fortune Media/Getty Images)
Pompeo urged the Trump administration, which has also voiced its opposition to the deal, to “reconsider Pennsylvania workers, who are almost all in favor of moving forward with this deal, all but the top liberal union leadership…
Get FOX Business on the Move by clicking here
“It's good for the community and the Moon Valley,” he said.
American steel Shareholders voted to approve A $14.9 billion deal with Nippon Steel in April, with 98 percent of shareholders voting in favor of the deal.
Eric Rolle of Fox Business contributed to this report.