Tokyo, 5 September, /AJMEDIA/
Taro Kono, an executive of Japan’s ruling party, said on Thursday that government decisions should not be distorted by efforts to win votes from labor unions, when asked about reports that U.S. President Joe Biden will block Nippon Steel’s acquisition of U.S. Steel.
Governments should not intervene in individual deals as buyouts can benefit targeted companies and regions, Kono said in a press conference where he laid out policy pledges for the Liberal Democratic Party’s leadership race that he hopes to win.
The Liberal Democratic Party’s parliamentary control means its leader becomes the prime minister of Japan.
Democratic presidential candidate Kamala Harris said on Monday that U.S. Steel should remain in domestic hands, making a pitch alongside President Joe Biden to working-class voters in Pennsylvania who are also being courted by her rival, former Republican President Donald Trump.
Harris used campaign events on Monday in Michigan and Pennsylvania, two battleground states, to court the crucial labor vote. At a packed union hall in Pittsburgh, she echoed Biden’s concern over U.S. Steel Corp being acquired by Japan’s Nippon Steel.
“U.S. Steel is a historic American company, and it is vital for our nation to maintain strong American steel companies,” Harris said at the rally. “U.S. Steel should remain American-owned and American-operated.”
Trump has said he would move to block the U.S. Steel deal, a potential merger that has stirred anxiety among some unionized workers.
U.S. Steel said it was committed to the deal with Nippon Steel. Both companies aim to close the deal by the end of the year depending on regulatory approvals.
In emailed comments, Nippon Steel said that acquisition of U.S. Steel will revitalize the American steel rust belt, benefit local workers and communities along with national security “in a way no other alternative can.”
“We believe that a fair and objective regulatory review process will support this outcome, and we look forward to closing the transaction as soon as possible,” it said.
