r/ProfessorFinance • u/LeastAdhesiveness386 Goes to Another School | Moderator • 3d ago

Geopolitics President Biden to decide fate of Nippon Steel's $15 billion bid for U.S. Steel

https://www.cnbc.com/2024/12/24/nippon-steels-us-steel-bid-referred-to-president-biden-for-final-decision.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
34 Upvotes

97% Upvoted

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20

u/edwardothegreatest 3d ago

If he denies it in his speech he should be clear that he’s honoring the wishes of the teamsters they expressed when they broke for Trump.

34

u/Haunting-Detail2025 Moderator 3d ago

There is no reason not to let this deal go through: US Steel is flailing, their executives want it, their union wants it, and Nippon Steel has explicitly stated they will keep the name, expand the business, and maintain a mostly American board of directors.

US Steel is either going to survive under an allied country’s ownership or collapse by itself, there is no alternative for them. Look what happened when the Biden admin blocked Spirit and JetBlue, now spirit is declaring bankruptcy and legacy airlines are about to start buying up its routes further decreasing competition.

9

u/Funny-Difficulty-750 3d ago

While some of the local branches of the steelworkers union want the deal, unfortunately national leadership opposes the deal and wants Cleveland-Cliffs to buy US Steel, which would basically give them a monopoly and domestically produced steel. That's the only reason blocking the deal is even being considered, because in any other world this would go through 100%.

8

u/AwarenessNo4986 Quality Contributor 3d ago

The US seems to be copying the Chinese more and more. Such a deal would have gone through easily in the 90s

5

u/janzeera 3d ago

If he approves it, gee it sure is hard to predict what the next headline on this subject will be…

6

u/ChristianLW3 Quality Contributor 3d ago

The final part of his presidency would be much better if he just accepted the fact that he’s going to get denounced no matter what he does

Then do what is necessary

2

u/Watchmaker2112 2d ago

Biden Sells Icon American Steel To China(The Whole Fucking Country)

5

u/NicodemusV 3d ago

FDI decisions such as this are the only way these old, outdated industries in the U.S. will get any kind of upgrade or investment.

Recently, Hanwha bought Philly Shipyards for $100m, and South Korean investment into American shipbuilding is trending up.

Domestic American management has been overrun by MBAs and greedy bean counters who only care about making profit for shareholders. You see it in all the legacy companies that once made this country great.

Capitalist greed gone too far hollowed out this country.