(Bloomberg) -- A group of pro-union US lawmakers is asking US President Joe Biden for a “strong repudiation” of Nippon Steel Corp.’s proposed acquisition of United States Steel Corp., saying the deal raises serious concerns as a threat to the viability of American steel production.
The letter from the Congressional Labor Caucus adds to pressure on Biden to kill the deal a year after its announcement. Tuesday’s letter, seen by Bloomberg News, was signed by 29 US lawmakers, led by Ohio Representative Marcy Kaptur and Pennsylvania Democrat Chris Deluzio. It underscores concerns throughout the labor movement, which has historically close ties to the Democratic Party.
Biden plans to formally block the $14.1 billion sale of US Steel to Nippon Steel on national security grounds once it is referred back to him this month, people familiar with the matter told Bloomberg News last week. The Committee on Foreign Investment in the United States panel has been reviewing the deal for much of this year and must refer its decision to Biden by Dec. 22 or 23. Biden is an avowed supporter of the labor movement and has long courted the backing of union leaders and members.
“Despite Nippon Steel’s press releases and verbal reassurances in response to Cfius’s review that it will invest billions of dollars in US steel manufacturing while guaranteeing no related jobs will be transferred outside of the US, they have failed to put forth any enforceable commitments in writing to hold them to their word,” the letter said. “We call for your strong repudiation of the merger on or before the Dec. 22, 2024 end of Cfius’s third 90-day review period.”
Not all Biden allies are on side. A trio of prominent Black House Democrats wrote Biden in a Dec. 12 letter expressing support for the deal, saying Nippon Steel’s pledges to invest in the steel industry will boost several manufacturing sectors that “play a vital role in providing jobs and economic security, particularly for Black Americans and their communities.”
“We encourage you and your administration to collaborate with all stakeholders to support the successful completion of this effort,” lawmakers Maxine Waters, Jim Clyburn and Bennie Thompson wrote. Clyburn, in particular, is a close ally to the president and his endorsement salvaged Biden’s primary bid ahead of the 2020 election and ultimately vaulted him to the White House.
The Labor Caucus letter follows a January letter it sent to Biden calling for a “comprehensive” review of the deal.
--With assistance from Josh Wingrove.
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