The Global Business Alliance, a group of multinational corporations, is urging the Biden administration to keep politics out of any national security review of Nippon Steel’s offer to buy U.S. Steel — but politics is precisely the problem.
The deal: Japan’s largest steel producer is offering over $14 billion to buy U.S. Steel, and on paper, it shouldn’t be a particularly painful process. The offer is a nice premium over where U.S. Steel’s stock is currently trading, and as Japan is among the US’ closest allies, under normal circumstances, government oversight would be only routine. So why did Nippon Steel have an executive in Washington last week to meet with concerned lawmakers?
Because this is 2024. U.S. Steel owns major plants in Michigan and Pennsylvania, two states US President Joe Biden must win in November to secure re-election – and the United Steelworkers union is mad enough to spit. Neither U.S. Steel nor Nippon Steel consulted the union as the deal was being negotiated, and union leadership is hammering management for selling out to a foreign-owned company.
So rather than a swift approval, Biden (and, it should be said, a bipartisan group of lawmakers) has expressed support for a review through the Committee on Foreign Investment in the United States, an agency set up to safeguard national security in major deals by foreign-owned corporations.
And, gosh, who knows how long that could take? GZERO’s crystal ball keeps pointing to a resolution sometime after Tuesday, Nov. 5.
In this episode of Tools and Weapons, Microsoft Vice Chair and President Brad Smith sits down with Ed Policy, President and CEO of the Green Bay Packers, to discuss how purpose-driven leadership and innovation are shaping the future of one of the world’s most iconic sports franchises. Ed shares how technology and community-focused initiatives, from Titletown Tech to health and safety innovations on the field, are transforming not just the game of football, but the economy and culture of Green Bay itself. He explains how combining strategic vision with investment in local startups is keeping talent in the Midwest and creating opportunities that extend far beyond Lambeau Field.
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Egyptians are voting this month in parliamentary elections that aren’t expected to change who’s in charge, but could allow President Abdel Fattah el-Sisi to rule beyond 2030.
Thailand and Cambodia’s ceasefire is on the verge of collapse. Strikes were launched across their disputed border today, following clashes over the weekend that resulted in the death of a Thai soldier.