(Reuters) – The United Steelworkers union said it is concerned about Nippon Steel’s latest proposal that gives the U.S. government a veto over any potential cuts to U.S. Steel’s production capacity, if they get approval to merge.
The union, which opposed US Steel’s merger with the Japanese steel giant, said Nippon’s offer failed to ensure long-term production and build domestic capacity. integrated facilities.
“Protecting capacity simply means putting our equipment on hold, letting it rust to the point where it is no longer possible to restart it,” the union said in a statement on its website on Thursday.
The proposal “is nothing more than a ‘Hail Mary’ destined to fall on the ground,” he adds.
On Tuesday, reports said Nippon Steel had offered to give the government final say on any potential production cuts, as part of its efforts to gain approval from President Joe Biden for the acquisition of the U.S. steelmaker.
The Committee on Foreign Investment in the United States (CFIUS) referred the decision to approve or block the deal to Biden, who must decide on the deal by January 7.
If it takes no action, the merger will be automatically approved.
US Steel and Nippon Steel did not immediately respond to Reuters requests for comment.
