Duval Times

Japan-based Nippon Steel Corporation's proposed acquisition of U.S. Steel Corporation, one of America's prominent steel companies, has raised concerns among U.S. lawmakers. Despite alternative offers from American steel companies and consortiums of investors, Nippon Steel Corporation is on track to control a leading steel company in the United States. This has sparked discussions about the potential economic and national security implications of allowing a foreign nation to have control over a critical industry.

U.S. Senators Marco Rubio, J.D. Vance, and Josh Hawley have expressed their concerns in a letter to U.S. Treasury Secretary and Chair of the Committee of Foreign Investment in the United States (CFIUS), Janet Yellen. In the letter, the senators urged CFIUS to block the acquisition, emphasizing the importance of protecting American companies from foreign control.

Senator Rubio highlighted the need to preserve the purpose of trade protections, stating, "Allowing foreign companies to buy out American companies and enjoy our trade protections subverts the very purpose for which those protections were put in place."

Meanwhile, Senator Vance stressed the role of CFIUS in mitigating the consequences of foreign acquisitions, stating, "The Committee cannot rebalance American trade or reshape its corporate governance, but it can mitigate some of the worst consequences of both. It can and should block the acquisition of U.S. Steel by NSC, a company whose allegiances clearly lie with a foreign state and whose record in the United States is deeply flawed."

The concerns raised by these senators reflect the importance of maintaining American ownership in critical industries such as steel. The steel industry plays a crucial role in manufacturing, defense, and other essential capabilities for the United States. Allowing a foreign nation, even an ally, to control a leading steel company raises significant economic and national security concerns.

The letter sent by Senators Rubio, Vance, and Hawley calls upon CFIUS to consider the viable alternatives to maintain American ownership and prevent the acquisition by Nippon Steel Corporation. The senators urge CFIUS to carefully evaluate the potential implications of the acquisition and take action to protect American interests.

As discussions continue and CFIUS evaluates the proposed acquisition, the concerns raised by these senators highlight the importance of safeguarding American companies and industries from foreign control. The decision made by CFIUS will have significant implications for the future of the U.S. steel industry and its role in the nation's economy and security.

Click here for the full text of the letter.

To find out more, go to this link: https://www.rubio.senate.gov/rubio-vance-hawley-protect-american-steel-from-foreign-control/