Pennsylvania Gov. Josh Shapiro speaks with members of the media
during his visit to Philadelphia Youth Basketball's new Alan Horwitz
"Sixth Man" Center in Philadelphia, on July 30, 2024. (AP Photo/Matt
Rourke)
WASHINGTON
(Kyodo) -- Pennsylvania Gov. Josh Shapiro on Tuesday voiced his opposition to
Nippon Steel Corp.'s proposed acquisition of United States Steel Corp., saying
he has "serious concerns" over the plan.
Shapiro
is among several Democrats across the United States who have been mentioned as
being on Vice President Kamala Harris' shortlist as she chooses a running mate
for the upcoming presidential election.
The
popular governor told a press conference following a tax event in Philadelphia
that he will review any business deal through "the prism of how does it
impact Pennsylvania workers," as the state has grown thanks to U.S. Steel
and other industrial manufacturers.
"I
have serious concerns about the deal that has been put forth," he said.
"Speaking from a state perspective as governor, if the U.S. Steel workers
aren't happy with this deal, which they are not, I'm not happy with this
deal."
U.S.
Steel, founded in 1901, is headquartered in Pittsburgh, Pennsylvania, a key
battleground state in the Nov. 5 election.
Both
President Joe Biden, who abandoned his bid for a second term and endorsed
Harris to be his successor more than a week ago, and Donald Trump, the
Republican nominee in the election, have backed U.S. Steel's unionized workers
in their strong opposition to the deal.
The
Japanese and U.S. firms believe the merger, creating the world's third-largest
steelmaker by volume, would benefit them. A large majority of U.S. Steel
shareholders have also already approved the $14.1 billion deal.
But
since the planned all-cash transaction was announced in December, United
Steelworkers International has spoken against it, turning it into a sensitive
political issue.
Biden,
who needed to secure support from labor unions for the presidential election,
said multiple times earlier this year that the iconic steelmaker should be
domestically owned.
On
Tuesday, Shapiro also said, "What's been put forth on the table is not something
that would enjoy my approval, and I'm going to continue to stand directly
side-by-side and locked-arms with U.S. steel workers, the very people who have
built this commonwealth and this country."
"They
deserve real respect," added the governor, who attended the press
conference with Treasury Secretary Janet Yellen.
The
acquisition plan needs to be approved by the Committee on Foreign Investment in
the United States, which is in charge of examining certain foreign investment
transactions in U.S. firms and determining whether they pose national security
threats.
The
committee, also known as CFIUS, is chaired by Yellen, who said in April she
accepted Biden's view that U.S. Steel should remain in American hands.
Asked where the
merger plan's review stands now, she said CFIUS will look at any transaction
from a national security perspective and try to make the right decision, but
that she is "not able to talk about the specifics.