Harrisburg – American senator David McCormick said on Tuesday that a arrangement that will allow Japan Japan based in US Steel will guarantee an American CEO, a majority of members of the United States Board of Directors and the US government approval on certain business functions.
Pennsylvania Senator spoke of CNBC, four days after President Donald Trump suggested that an “partnership” agreement was at hand to resolve the offer of nearly $ 15 billion in Japanese Steel to buy an emblematic American steel US Steel which was blocked for national security reasons.
After his statement on Friday, Trump told journalists on Sunday that US Steel will be “controlled by the United States, otherwise I did not conclude the agreement” and that “it is an investment and it is partial property, but it will be controlled by the United States”
McCormick described the veto of the American government as a “gold share” and suggested that the idea was the proposal of Japanese Steel.
Japanese Steel has not yet said if she is ready to accept the concept described by Trump and McCormick instead of his attempt to buy the company.
Governor Josh Shapiro, speaking on Tuesday at an independent press conference at the University of Pittsburgh, has not discussed conditions, but said “that there is still no signed transaction, and there is still a lot of work to do.” However, he said he was satisfied with the Discussions Directorate with Japanese Steel.
As he sought to win US officials in the midst of a national security review, Nippon Steel gradually increased the amount of money that she undertakes to invest in US Steel in addition to the purchase offer. This amount now reaches $ 14 billion, according to Trump, McCormick and Pennsylvania State Senator Kim Ward, who estimated the agreement at $ 28 billion.
This $ 14 billion investment is to build a new electric arc furnace – a more modern steel that melts scrap – somewhere in the United States, Ward’s office said.
He also heads $ 2.4 billion in American steel facilities in the Pittsburgh region, including the Haut Fourneau Edgar Thomson Works just outside Pittsburgh which was built in the 19th century and building a new research and development center at Carnegie Mellon university in Pittsburgh, officials said.
“They continued to do whatever they could, they offered everything they could to improve the investment for the Trump administration and the President Trump exam,” said US representative Dan Meuser, who met last week with Trump to discuss the agreement.
To solve national security problems, McCormick said that the agreement involved a “national security agreement” that Japanese Steel will sign with the United States government.
This implies an American CEO, US board of directors and a share of gold that requires US government approval of a number of members of the board of directors that allows the United States to ensure that production levels are not reduced, said McCormick.
McCormick said that Nippon Steel will have members of the board of directors and that the entity will be “part of their global business structure”.
He also said that Nippon Steel gets what they wanted, which is access to the American market and the benefits of longtime American protectionist prices which, according to analysts, have helped to invigorate the inner steel.
“I think they know what they get started,” said McCormick. “They negotiated it. It was their proposal, and I think they saw it as a big strategic decision for them and which is great for the United States.”
Many aspects described by McCormick and Trump have already been launched by Nippon Steel.
Keeping the sits of us in Pittsburgh in Pittsburgh has always been part of the attempt at Japanese Steel to buy it. Japanese had committed to putting us in steel under a council made up of a majority of American citizens, with a management team made up of American citizens.
Japanese Steel also undertook not to make layoffs or closings of factories following the transaction, to protect the interests of American steel in commercial matters and that they would not be steel slabs that would compete with the high stoves of us Steel.
Nippon Steel published an approved statement on Friday which said that “the partnership between Japanese Steel and Us Steel changes the game”. But he did not describe the terms of an agreement or said if he had accepted final conditions.
The Board of Directors and shareholders of the US Steel had approved the offer of Nippon Steel, but it was opposed by the United Steelworkers Union and was blocked by former president Joe Biden by leaving. After Trump became president, he submitted it to another national security exam by the United States Foreign Investment Committee.
The United Steelworkers said on Tuesday that it could not speculate on a golden share or a partnership. But, he said, he remains concerned about the fact that US Steel is a critical producer in a critical national industry and that Nippon Steel is a foreign company with long experience of violation of American commercial laws.
The combination of Japanese Steel – The 4th largest steel producer – and US Steel – the 24th largest in the world – would create the 3rd largest steel producer in the world in an industry dominated by China and Chinese companies, according to figures from the World Steel Association of 2023.
Among the properties of US Steel, based in Pittsburgh, is a Fairless Hills factory, in the county of Bucks.
WPVI contributed to this report.
