(Bloomberg) — Vice President Kamala Harris will say United States Steel Corp. Should remain domestically owned and operated during a visit to Pittsburgh on Monday, the latest headwind to the proposed sale of the company to Nippon Steel Corp.
Harris will make the comment during a Labor Day event with unions in Pittsburgh, home to both US Steel and the United Steelworkers union, which has opposed the sale, an official familiar with her plans said. Harris will stress a commitment to supporting American steel workers, the official said.
The statement is her first on the proposed deal, and aligns with the position of President Joe Biden, who has stopped short of outright blocking it as a security review proceeds. GOP candidate and former President Donald Trump has also called for the transaction to be blocked.
It’s not clear whether a decision on the takeover will land on Biden’s desk or that of his successor — or even if it will proceed at all. Still, Harris’ comments add to the political maelstrom around the $14.1 billion deal — rooted in Pennsylvania, one of the election’s foremost battlegrounds. The state’s two senators have been among the most vocal in opposing the sale, as has Senator JD Vance of neighboring Ohio, who is Trump’s running-mate.
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Nippon Steel announced last week an additional $1.3 billion in investments in US Steel’s unionized mills to try and win over the union, which has voiced concerns about longer-term prospects for workers once the current labor agreement expires in 2026.
‘Unwavering Commitment’
Responding to reports of the Harris campaign’s planned announcement, US Steel highlighted that pledge and emphasized that it remains committed to the deal.
Nippon Steel’s promise to invest is “evidence of its unwavering commitment to U S Steel and all of our stakeholders,” not only to complete the transaction but also to protect and grow the company, Chief Executive Officer David Burritt said in a written statement Monday. “US Steel will be a much stronger company as a result of the transaction and these investments.”
US Steel shares surged when Nippon’s bid was announced in December, before giving up much of those gains when Trump and Biden voiced opposition. The stock then outperformed peers as Biden withdrew from the electoral race, on bets a Harris-led ticket may put up fewer obstacles for getting the deal done. Trading was closed Monday for a US public holiday.
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Debate over the takeover has intensified in the run-up to the November vote, though there’s little sign that the deal will conclude before then. It remains under review by the Committee on Foreign Investment in the United States, a panel chaired by the Treasury Secretary that more frequently targets US adversaries like China. Biden’s administration has deferred to that ongoing review so far.
Harris will visit Michigan on Monday for a Labor Day event, before traveling to Pittsburgh with Biden — their first joint campaign event since she became the nominee. They will attend an event at a union hall with leaders from many of the country’s major labor groups, including the United Steelworkers.