U.S. Steel might shut down its mills and possibly relocate its headquarters from Pittsburgh if the proposed $14.9 billion acquisition by Nippon Steel fails, according to a Wednesday report in the Wall Street Journal, which cited an interview with the company's CEO. David Burritt, the CEO of the steelmaker, informed the WSJ that the nearly $3 billion investment promised by Nippon for U.S. Steel's older mills was essential for staying competitive and preserving jobs. "We wouldn't proceed with that if the deal doesn't go through," Burritt stated to the WSJ. "I lack the funds." Since its announcement in December, the deal has faced growing opposition from U.S. politicians and the United Steelworkers union. On Tuesday, Democratic presidential candidate Kamala Harris expressed that U.S. Steel should stay under U.S. control, while Republican nominee Donald Trump indicated he would attempt to block the deal if elected. Both U.S. Steel and Nippon Steel have sought to alleviate concerns about the deal, highlighting its advantages. Earlier on Wednesday, Nippon announced that the majority of board members and the core senior management at U.S. Steel would be U.S. citizens if the deal proceeds. Burritt also told the WSJ that the expanded Arkansas mill would enable the company to close its last steelmaking operation in Pittsburgh, Mon Valley, and it is likely to move its headquarters to the South.
The deal has secured all necessary regulatory approvals outside the U.S. and has been approved by U.S. Steel's shareholders. It is currently undergoing regulatory review in the United States.
