Nippon Steel and US Steel reached a deal in December for the Japanese steelmaker to acquire its iconic US competitor. The acquisition is a non-hostile, $14.1bn deal in which Nippon would pay $55 per share — a 40 per cent premium to the US company’s share price the trading day before the deal. Investors cheered, with shares in US Steel rising 26.1 per cent the day it was announced.
But the merger is opposed by the United Steelworkers labour union. And on Thursday last week, President Joe Biden sided with the union, declaring that it is “vital” for US Steel to remain “domestically owned and operated”.
An American president opposing investment by a staunch ally in a US manufacturing company is a sign that protectionism has run amok. What Biden should be focused on instead is the long-term prosperity of the American people.