Nippon Steel purchasing US Steel wouldn't be bad for the US. US and Japan have extremely close relations and interlocked interests. Having a healthy steel manufacturer employing US citizens and selling a quality product to US customers seems better than having an unhealthy company that lays off US citizens to me, but what do I know.
No US steel should remain in American 🇺🇸 control selling US Steel is a national security issue if we were to sell US Steel to Japan then Japan will deny the American military the steel it needs to build tanks, planes, and ships.
@G-Man-half-life Sure thing, because that's something Japan has shown an interest in doing and US steel is the biggest manufacturer of steel in the US and they are the only choice for steel. Except for none of that being true.
Cleveland-Cliffs offered to buy U.S. Steel in 2023 for $7 billion, but the offer was rejected in favor of a competing $15 billion all-cash offer from Nippon Steel. REMEMBER ALL CASH, also giving $5000 bonus to all employess ! Nippon Steel offer was double. This guy just hates Japan and Japanese. Period US steel No24 ranking Nippon Steel No4 in the world. and Cliffs ? No 22 !! If Nippon buys US steel, Nippon-US Steel will be No 3 in the world. Which is better ?? Ask any businessman. I read articles in Japanese Business paper, that Nippon Steel wants to make steel in the USA to avoid Tariffs. Makes sense. There are Toyota , Nissan, Honda factories in the USA, and Brazilian companies making cars ?? Nothing He can not put down Japan begging to Biden, Union, Trump using America First ideology. US steel was No1 long time ago, and its an American Icon. so what > 24th in the world is not legacy nor icon anymore. US steel needs help now
because the US political/managerial class is too proud to be seen as being bought out by an East Asian country, same reason why 7&i doesn't want to be bought out by couche-tard
Nippon Steel better really talk directly to Trump team and get this sorted out. The US Japan relationship is rock solid and mutually dependable, it shouldn't need to face such turbulence
All I can say is that I am in misery every day because my parents Bonnie and Terry Tipton of Las Vegas, Nevada as well as the Noones have been able to torment me with emotions of inferiority and failure. However I earn money, I do not want to be near them. I believe based on observation that they believe it is impossible for them to be dishonest. They do speak condescendingly about the lies of other people. Keith Hall, the Director of the Congressional Budget Office came on C-SPAN Washington Journal in August 2023, and said that China and Japan held 30% of the $32 trillion debt then. That would be $9.6 trillion. Two Congressmen just appeared on CBS Face the Nation and said the Chinese hold $1 trillion of U.S. Treasury securities. I do not think both statements can be true. Several sources have also said the 12 month fiscal deficit is at $1.6 trillion. Congressmen and senators come on cable television like Fox Business and say we are adding to the federal debt at $1 trillion every 100 days. That is not consistent with $1.6 trillion over 12 months.
@wilburwood8261 The CFIUS investigation concluded that there are 'issues with national security.' If there were to be a reevaluation and the decision were overturned, it seems like various other problems might arise...
US Jobs 1st, it doesn't take away jobs from those employed then and in the future, since like Toyota for example, employ 🇺🇸 citizens abroad, but with refined methods and sensibilities. This can strengthen the bond and drop costs when among its own branches. US could use improvements in their methods that are as prolific as Japan, while still being a geographically smaller country
This video is interesting because it presents the reasoning from the Nippon Steel perspective and actually answers why it wants to buy into the USA market. What puzzles me are a couple of macro economic arguments regarding this buyout that have yet to receive any public voice, and these are listed below. Perhaps my understanding of economics faltering, and if it is, please let me know the faults in these arguments. Nippon Steel Buyout of US Steel => *Macro Economic Arguments Never Considered?* * The difference between the Nippon Steel offer that was approved by 99+ % of US Steel shareholders in Apr-24, and the highest Cleveland Cliffs offer would provide *$790+ million in capital gains tax to the Fed Treasury.* (In reality, far more in taxes, because the CC offer was shares & cash, not the all-cash NS offer, and because now, any CC offers would be thwarted on competition grounds and any CC offer would be revised to a much lower value.) * The Nippon Steel offer is all cash financed using money from Japan, not the USA. *$14+ billion dollars would thus be injected into the US economy, enough money to easily create 14,000+ new jobs or 28,000 new PhDs and physicians.* If that money were to be raised from within the USA, that money from any buyout would not create any new jobs. (Note that the new jobs could be created would not be restricted to those related to the steel industry.) Those against the Nippon Steel buyout say it would be wrong because the profits will flow out of the USA and to Japan. Consider this: A share of X, (i.e., US Steel share), bought 20 years ago and sold at the $55/sh offered by NS, will have returned less than a 4.5% yearly interest rate including dividend. Trump has stated he will provide some sort of government assistance to prop up US Steel, at the cost to the USA Taxpayer, and make it "great again"....And get 4.5% return on that investment. Over the same period, the S&P 500 has returned more than 9% ROI. Does blocking the Nippon Steel buyout and replacing it with government assistance sound like a good deal, or a waste of Taxpayer dollars? And a little more... US Steel debt is rated BB- by Standard and Poor's, and that is in positive consideration of a Nippon Steel buyout. Still, this shows borrowing more to improve US Steel technology on its own would be costly...and risky.
No US steel should remain in American 🇺🇸 control selling US Steel is a national security issue if we were to sell US Steel to Japan then Japan will deny the American military the steel it needs to build tanks, planes, and war ships.
@@somaday2595 By and large, I agree with you. It is clearly in the best interest of the US to allow the buyout. There are some macro econ trends that you should be aware of. * The US anti trust laws are good, but enforcement is poor. Therefore an attempted merger is beneficial to the other US company. * The total money injected into the US economy could create jobs and education as you suggest, far more than that actually, but only if the money is allowed to circulate. Quite often in big purchases the bulk of the money would go to very few already wealthy owners who would rather hold the money than to spend it.
@@G-Man-half-life There is no legitimate national security issue that I can imagine. Let me know specifically of those you know of. US Steel has 10% of the US market. It sold the Bary Works plate mill 20 years ago, and some of that steel went to mfg arms, but Bethlehem/ Mittal/ Arcelor Mittal/ Cleveland Cliffs now owns that, and Bethlehem provided much more steel to the military. Further, if the situation ever arose that NS refused to allow a US Steel subsidiary to supply steel to the US Govt, the US Govt can simply seize the plant assets and make what it wants. Think Apr-52. The NS buyout offered the most secure and environmentally friendly future, especially when USS integrated steel facilities were concerned. NS steel production centers on blast furnaces, not electric arc furnaces. Why is it that no one raised this issue when ISG sold its assets to Mittal and Inland to a Mittal affiliate around 2005? that should have been more alarming as foreign buyers go, and it was far less solvent / less stable than Nippon Steel.
@@danjager6200 Thanks for your reply. * A CC buyout should trigger anti trust big time, not only because of size, but eliminating the only other large integrated steel operation. Buyers, esp the auto makers, would object. * 85+% of the USS shares are institutionally owned, so much of the money would flow back into and raise the market ever so slightly. And as for the Fat Cats, rather than holding the gains, they would be invested in something else. This would have been new actual capital, not money borrowed from a US bank or issuing bonds.
Sure would be nice to keep the profits of American workers IN the USA, instead of exporting profit. But seems like Americans don't want to invest in the future like other countries do.
YES The fact that US investors don't invest, but capture profits from trading ... is why the Japanese, who have a proven record on investing and maintaining large capex businesses, should take over USS.
So, how much of your own money do you have invested in the integrated steel producers in the USA? USS debt is rated at BB- by S&P and that is up since NS' offer in Dec-23. This means it is still costly for USS to borrow to improve its facilities and technology. NS can provide access to lower cost financing, and with that, improve USS and improve its profitability. The difference in profitability is $$$ that would not be there without the NS investment, and therefore that increase in profit could flow back to NS without a cost to the USA. What do you think will happen to the money current USS stockholders will receive from the sale to NS? More than $800 million of that will flow to the US Treasury as capital gains tax, and the remaining $14 billion can be reinvested in the USA in areas more profitable than the current 0 to 4.5% return of the integrated USA steel producers. And put this in perspective. US Steel supplies less than 10% of the steel in the USA in 2023. Did you complain and object when Wilbur Ross/ International Steel Group founder and Trump's first Secretary of Commerce sold the former Bethlehem Steel and LTV Steel to Mittal Steel of India/ Luxemburg? Did you complain and object when a Mittal Steel affiliate bought Inland Steel?
@@blaydCA At the current USS ROI, there is not much profit that would be flowing from the USA. If NS buys USS and improves its ROI and can actually make some gain on its investment, reduces CO2 emissions and secures future jobs, isn't that a win-win?
People need to ask a big important question who bought all the machines of all the Mills in the Mon Valley Pittsburgh West Virginia and Ohio when the Mills closed down. What Foreign countries bought that Machinery and what did they do with it.
The Dissolution of Bethlehem Steel in the 2000's is already a travesty and hard lesson for US industry. Nippon Steel has a good track record of not just shutting down and consolidating at the first opportunity. We would need immediate and ongoing investments to modernise and keep US Steel competitive. Without investments, some of the Mills will have to be closed down or be sold to Clifford, who will close it down and consolidate. Nippon Steel is the best partner I see on the horizon for US Steel.
As explained in this video, US steel leaders failed to invest in the future. Now it’s too late. So they want to make a slick deal and exit with tons of money and kudos. They should let US steel go bankrupt and loose all their money in shares. That’s the only thing they understand. Then a US company can take over it… or even Nippon. By then, it doesn’t matter.
@TheBooban I see, well not that I can't understand, but I was paid 20$ for each comment I post on videos about this topic. Made a 160 bucks for 5 minutes of work.
@@TheBooban Buddy, I'm lying down on my couch and enjoying the weekend, I have no interest in Biden or his policies or US Industry for that matter. I'm in a few telegram groups where they hire and pay people for this sorta thing. Let's see, there are about 250 people in the group that posted the "job," about 30 people responded with screenshots and links to the comments for verification. I did my little comment spree, posted the proof, and 10 minutes later, I have 160 bucks Venmo'd to my acct. And this isn't something new, neither for me nor for members of the group. Normally, they wait 48-72 hours before crediting the money, so people usually refrain from deleting their comments or such, today, it took less than 20 minutes, and I wouldn't care if they kicked me off the group, there are several such groups. If you have an old active account that hasn't outright posted bot content, there's plenty of "jobs" to go around.
@@TheBooban One comment per video from each channel was what's required. Most of the time, they don't want you to overdo it, or they could've just hired bots for mass spamming. They want things to look organic, you can check some other videos on this topic from other channels and you might find my comment.
Too many low productivity corporations in America. It takes imagination education and investment to raise the productivity of run down corporates. Politicians protecting against real competition will only pass the buck. Like GM there is a huge modernisation opportunity at US Steel. Such as Green Hydrogen to produce green steel. Less polution less use of blast furnaces and a better quality output.
The Nippon Steel acquisition of U.S. Steel is fundamentally a black and white issue, yet sadly, some Americans have been brainwashed by short-term benefits. This isn't just about technological innovation or job opportunities - it's about corporate ownership. Nippon Steel isn't simply seeking a mutually beneficial relationship with the U.S.; rather, they could leverage U.S. Steel's existing domestic advantages across various sectors, and might even pressure the U.S. government for concessions. As for those short-term benefits, they're all subject to change. Besides, even Nippon Steel itself has faced management issues - who can guarantee these short-term benefits will last forever?
NS appears to be in a position to economically reduce CO2 emissions and improve blast furnace operation fairly quickly and can bring the money needed to do this quickly. So even if USS could do this on its own, it would more years down the road and thus less likely. The current easiest road to assuring it stays in business without NS is pursue the Big River Steel direction, which is world class electric furnace tech laid out by a former CEO of Nucor. If the NS buyout succeeds, maybe the Granite City blast furnace operation could be revamped and revived to supply iron to Big River.
@@somaday2595 So you want to rely on foreign companies to strengthen America? I thought independence and self-reliance were the American spirit. If US Steel gets acquired by Nippon Steel, what you described could certainly happen, there's no issue with that, but there's no such thing as a free lunch. Nippon Steel is ultimately a for-profit organization, so this would not only mean US Steel is no longer American-owned, but Japanese companies would similarly find ways to pass their investment costs back to America, just like Britain did in the past. I believe it would be better to spend more time having the US government support US Steel's industrial upgrade, or to coordinate mutually beneficial parallel plans with Nippon Steel. The overall benefits and profits may not necessarily be worse than having them distributed by foreign entities.
@@專一 My comments are objective and not emotional. Who do you think sold the former Bethlehem Steel, LTV Steel and Acme to Mittal? What became of that? Did the USA suffer? Investing $14+ billion into the USA economy should have quelled any of your doubts along with $790+ million collecting in capital gains tax by the US Treasury if the NS deal succeeds. USS has less than 10% USA of the market. that amount can be covered by the excess capacity at Cleveland Cliffs. Without the buyout, the chances of slowing shuttering the USS blast furnaces is more likely. So which makes for a stronger USS? The USA govt cannot discriminate as to which company makes steel. And USS had returned less than half the ROI as the average S&P 500 company, so that is a losing proposition. Use NS to finance and improve the tech and efficiency. Re: "who can guarantee these short-term benefits will last forever?" I do not know of anyone who can, although USW's McCall asks NS to guarantee the future 10 years from now, something he fails to ask of Cleveland Cliff's Goncalves. What industry can truly guarantee forever benefits?
@@專一 I disagree, but would like to say that your argument is a lot better thought out than several of the others on this video. Japan is one of the closest allies the US has. Letting US Steel collapse is a much bigger national security risk. Further, the short term benefits @somaday2595 pointed out are also long term in that they are modernizing the facilities.
A foreign company will own one of the last American steel companies. How is this not a national security issue? Japan and US are allies but they don’t share all foreign policy goals. If convenient to Japan they will screw over the American company and workers if they want to. It’s risky having one of the last companies in such a critical strategic industry being in the hands of foreigners.
if USW wants to keep USS american owned. maybe they should throw out a comepetitve bid. how about that. I cant take this political medelling in the economy. The steel business is already hamptered enough by regulations. Let the sale be rendered.
These remaining PA plants are using recycled steel and making new products. The US does little mining, coal or iron ore and the foundries are gone. If we really want to help get our steel production going again, build new mills open the foundries, and start mining again. Lets go!! 🇺🇸
The CEO already said USS is not worth what Nippon Steel is paying so he will not even consider buying. In fact, he implied that he would rather throw USS under the bus then let Nippon Steel save USS.
They can come to Northern Ontario where the iron and other metals are found. They can build their steel mills just miles from the smelters. Vale Canada Limited is a Brazilian company and they own the mining rights to billions worth of proven minerals. I would have no problem with Canada being part of that dead.
😂if USS wanted to buy NIPPON... JAPAN would Say... HELL NO, YANKEE. 😂⚠️🇮🇳⚠️ in a few years , Japan will have India as a major competitor. Japan's leaders are a kite in a hurricane!
The United States and Japan have an extremely close alliance and friendship , however the United States must first think about it’s own best interest’s first . On the surface it would appear to be in the best interest of both Nations to allow this deal to happen , but when you look deeper at this especially in the United States this is not something that is in the best interest of the United States. There’s currently a revitalization of the American people with regards to American independence for the United States to be able to stand independently from other country’s around the world , to produce and consume American made products. Putting America 🇺🇸 first , American jobs first , American economy first and so on , a deal such as this is counterintuitive to those ideals … And personally I never believed it possible but for once Biden and Trump both are in agreement on this , and as much as I personally embrace the Japanese People and the Nation of Japan 🇯🇵 I can’t and will not agree to a deal like this at this time , The American 🇺🇸 people must concentrate on the America first ideology …..
So Arcelor Mittal should be forced to sell its Indiana Harbor steel mill to a US based company? So Slovakia should force US Steel to sell its Košice Works? Stellantis should be forced to sell Chrysler? BP should be forced to divest what were Standard Oil of Indiana/ Amoco and Standard Oil of Ohio and Venezuela should be forced to sell Citgo to USA owners. These companies have far more impact on the USA economy than US Steel with its 10% of the USA steel market. -You think it is okay to screw employees and retirees holding US Steel stock out of their gain? -The USW should have pushed for an employee buyout of US Steel in 2020 when its market capital value was less than $2 billion. -How much do you think the US Treasury would have taken in through capital gains tax on this sale? How many new jobs could be created by $14+ billion of foreign capital injected into a company that has returned less than 3% ROI to its owners over the last 20 years?
It is a two-way street, the same thing happened when Foxconn tryed to take stake in Nissan, financially troubled automaker,The Ministry of Economy, Trade and Industry of Japan has forced Honda to merger with Nissan in a hurry, in order to prevent and avoid a takeover of Nissan by a foreign company. 😀
Japan's Ministry of Economy, Trade and Industry has done nothing special. Honda and Nissan have merged independently; US Steel is in favor of a takeover, but Nissan does not want a merger. There is a big difference. Please continue to share your knowledge from the internet with others. In the US it will be considered smart.
Keep it bankrupt you bozo. Nippon Steel is their only hope, Japan is a close ally of the United States, will keep jobs, and unlike greedy Western maximalist capitalism, you can trust the Japanese to stick to the deal and keep their word. All this does is cost Americans jobs and disrespect our Japanese allies. Blocking this deal is disgraceful.
I just lost my respect towards our own politics. Japan to call us hypocrits because we invite foreign companies to build in America with the tariffs but we block then from doing from doing so.😂😂😂
Braindead take. Japan and China hate each other and Japan views China as a threat. Dating back to the days of Imperial China, Japan refused to become a Chinese vassal state. And you expect us to believe they're gonna do it now? Sure buddy.
Nippon Steel buying US Steel will ruin US Steel because it will make the US Steels profits go to Japan rather than stay in the US where they can be obtained by the government through taxes so that the government can fund infastructure clean energy and poverty alleviation. Anyone who supports Nippon Steels bid to acquire US Steel is either a Nippon shareholder or misinformed.
@@1two3four5sixer If Nippon Steel acquires US Steel, US Steels profits will go to Japan because Nippon Steel is a Japanese company. If US Steel remains American owned, the owners could be taxed more because they are rich. The money made by increasing taxes on American owners of US Steel could be used to pay for things like infrastructure, clean energy or poverty alleviation.
Good for USA 🇺🇲! Modernize the Metallurgical Innovations with the Best of Refineries in Place for Industrial Output of Metal and Alloys for Affordable and Reasonable Prices meant towards Domestic Markets 💹 and Exports as well. Does place USA 🇺🇲 in the World Map of Green Metallurgy Industry.
@@yeetboi268 One tiny piece of the US is. That's true enough. Mostly it's poorly thought out fear mongering. I encourage you to read some of the other comments on this video. They are unhinged.
Nippon Steel purchasing US Steel wouldn't be bad for the US. US and Japan have extremely close relations and interlocked interests. Having a healthy steel manufacturer employing US citizens and selling a quality product to US customers seems better than having an unhealthy company that lays off US citizens to me, but what do I know.
No US steel should remain in American 🇺🇸 control selling US Steel is a national security issue if we were to sell US Steel to Japan then Japan will deny the American military the steel it needs to build tanks, planes, and ships.
@G-Man-half-life Sure thing, because that's something Japan has shown an interest in doing and US steel is the biggest manufacturer of steel in the US and they are the only choice for steel.
Except for none of that being true.
@@G-Man-half-life you want it to remain American but can’t keep it from going into bankruptcy
@@G-Man-half-lifeAnd when US Steel goes bankrupt...guess that national security issue won't be a big deal anymore.
@@G-Man-half-lifeAmericans ran it into the ground. Just like Bethlehem steel.
Cleveland-Cliffs offered to buy U.S. Steel in 2023 for $7 billion, but the offer was rejected in favor of a competing $15 billion all-cash offer from Nippon Steel. REMEMBER ALL CASH, also giving $5000 bonus to all employess !
Nippon Steel offer was double. This guy just hates Japan and Japanese. Period
US steel No24 ranking Nippon Steel No4 in the world. and Cliffs ? No 22 !! If Nippon buys US steel, Nippon-US Steel
will be No 3 in the world. Which is better ?? Ask any businessman.
I read articles in Japanese Business paper, that Nippon Steel wants to make steel in the USA to avoid Tariffs.
Makes sense.
There are Toyota , Nissan, Honda factories in the USA, and Brazilian companies making cars ?? Nothing He can not
put down Japan begging to Biden, Union, Trump using America First ideology. US steel was No1 long time ago, and
its an American Icon. so what > 24th in the world is not legacy nor icon anymore. US steel needs help now
it is funny because the steelworkers of Pensilvania support the deal
because the US political/managerial class is too proud to be seen as being bought out by an East Asian country, same reason why 7&i doesn't want to be bought out by couche-tard
There desperation has made them gullible to Nippons bribes.
Funny, but you are incorrect. Just like their own democrat senator, the workers don't support the sale .
@@JS-oh7uz Nippon Steel should be sued for its BS.
で、どうすんの？
買収拒否ならusスチール倒産よ？
米国政府の救済に期待してんの？
Nippon Steel better really talk directly to Trump team and get this sorted out. The US Japan relationship is rock solid and mutually dependable, it shouldn't need to face such turbulence
Too late the Nippon deal was already blocked today by Biden
Trump wants the deal blocked too. 😂
All I can say is that I am in misery every day because my parents Bonnie and Terry Tipton of Las Vegas, Nevada as well as the Noones have been able to torment me with emotions of inferiority and failure. However I earn money, I do not want to be near them. I believe based on observation that they believe it is impossible for them to be dishonest. They do speak condescendingly about the lies of other people. Keith Hall, the Director of the Congressional Budget Office came on C-SPAN Washington Journal in August 2023, and said that China and Japan held 30% of the $32 trillion debt then. That would be $9.6 trillion. Two Congressmen just appeared on CBS Face the Nation and said the Chinese hold $1 trillion of U.S. Treasury securities. I do not think both statements can be true. Several sources have also said the 12 month fiscal deficit is at $1.6 trillion. Congressmen and senators come on cable television like Fox Business and say we are adding to the federal debt at $1 trillion every 100 days. That is not consistent with $1.6 trillion over 12 months.
@@ChrisVink-b5b Sure. US Steel and Nippon Steel merger will solve all your problems!
@wilburwood8261
The CFIUS investigation concluded that there are 'issues with national security.' If there were to be a reevaluation and the decision were overturned, it seems like various other problems might arise...
Those producers having the most favorable combination of technology, financing, management and logistics, have the best chance of succeeding.
🇺🇲 and 🇯🇵 . Strong together ✌️
The U.S. said no to Japan
Such a traitor🤡
U. S. Steel must remain American. Enough of foreign acquisition of American land, infrastructure, and corporations.
lol. never trust an american.
US Needs customers, and investment
US Jobs 1st, it doesn't take away jobs from those employed then and in the future, since like Toyota for example, employ 🇺🇸 citizens abroad, but with refined methods and sensibilities.
This can strengthen the bond and drop costs when among its own branches. US could use improvements in their methods that are as prolific as Japan, while still being a geographically smaller country
Japan is such a close ally, it’s just like a US company buying US Steel…. 😂
@@Amy-ej9tq you don’t make any sense
@@alphaomega9198you’re chinese
@@alphaomega9198There is no military threat to Japan today. Because the place where steel was stolen will have the same end as World War II
その通りで、中国に買収されるケースとは訳が違う。しかし、多くの人は日本と中国の区別もつかず、USsteelの窮状も見えていない。
This video is interesting because it presents the reasoning from the Nippon Steel perspective and actually answers why it wants to buy into the USA market.
What puzzles me are a couple of macro economic arguments regarding this buyout that have yet to receive any public voice, and these are listed below. Perhaps my understanding of economics faltering, and if it is, please let me know the faults in these arguments.
Nippon Steel Buyout of US Steel => *Macro Economic Arguments Never Considered?*
* The difference between the Nippon Steel offer that was approved by 99+ % of US Steel shareholders in Apr-24, and the highest Cleveland Cliffs offer would provide *$790+ million in capital gains tax to the Fed Treasury.* (In reality, far more in taxes, because the CC offer was shares & cash, not the all-cash NS offer, and because now, any CC offers would be thwarted on competition grounds and any CC offer would be revised to a much lower value.)
* The Nippon Steel offer is all cash financed using money from Japan, not the USA. *$14+ billion dollars would thus be injected into the US economy, enough money to easily create 14,000+ new jobs or 28,000 new PhDs and physicians.* If that money were to be raised from within the USA, that money from any buyout would not create any new jobs. (Note that the new jobs could be created would not be restricted to those related to the steel industry.)
Those against the Nippon Steel buyout say it would be wrong because the profits will flow out of the USA and to Japan. Consider this: A share of X, (i.e., US Steel share), bought 20 years ago and sold at the $55/sh offered by NS, will have returned less than a 4.5% yearly interest rate including dividend. Trump has stated he will provide some sort of government assistance to prop up US Steel, at the cost to the USA Taxpayer, and make it "great again"....And get 4.5% return on that investment. Over the same period, the S&P 500 has returned more than 9% ROI. Does blocking the Nippon Steel buyout and replacing it with government assistance sound like a good deal, or a waste of Taxpayer dollars?
And a little more... US Steel debt is rated BB- by Standard and Poor's, and that is in positive consideration of a Nippon Steel buyout. Still, this shows borrowing more to improve US Steel technology on its own would be costly...and risky.
No US steel should remain in American 🇺🇸 control selling US Steel is a national security issue if we were to sell US Steel to Japan then Japan will deny the American military the steel it needs to build tanks, planes, and war ships.
@@somaday2595 By and large, I agree with you. It is clearly in the best interest of the US to allow the buyout. There are some macro econ trends that you should be aware of.
* The US anti trust laws are good, but enforcement is poor. Therefore an attempted merger is beneficial to the other US company.
* The total money injected into the US economy could create jobs and education as you suggest, far more than that actually, but only if the money is allowed to circulate. Quite often in big purchases the bulk of the money would go to very few already wealthy owners who would rather hold the money than to spend it.
@@G-Man-half-life There is no legitimate national security issue that I can imagine. Let me know specifically of those you know of. US Steel has 10% of the US market. It sold the Bary Works plate mill 20 years ago, and some of that steel went to mfg arms, but Bethlehem/ Mittal/ Arcelor Mittal/ Cleveland Cliffs now owns that, and Bethlehem provided much more steel to the military. Further, if the situation ever arose that NS refused to allow a US Steel subsidiary to supply steel to the US Govt, the US Govt can simply seize the plant assets and make what it wants. Think Apr-52. The NS buyout offered the most secure and environmentally friendly future, especially when USS integrated steel facilities were concerned. NS steel production centers on blast furnaces, not electric arc furnaces.
Why is it that no one raised this issue when ISG sold its assets to Mittal and Inland to a Mittal affiliate around 2005? that should have been more alarming as foreign buyers go, and it was far less solvent / less stable than Nippon Steel.
@@danjager6200 Thanks for your reply.
* A CC buyout should trigger anti trust big time, not only because of size, but eliminating the only other large integrated steel operation. Buyers, esp the auto makers, would object.
* 85+% of the USS shares are institutionally owned, so much of the money would flow back into and raise the market ever so slightly. And as for the Fat Cats, rather than holding the gains, they would be invested in something else. This would have been new actual capital, not money borrowed from a US bank or issuing bonds.
Holy shit do you teach economics? Great thread
Sure would be nice to keep the profits of American workers IN the USA, instead of exporting profit.
But seems like Americans don't want to invest in the future like other countries do.
Others profits to be kept by the ameriKKKans????
Buddy thats called stealing
YES The fact that US investors don't invest, but capture profits from trading ... is why the Japanese, who have a proven record on investing and maintaining large capex
businesses, should take over USS.
So, how much of your own money do you have invested in the integrated steel producers in the USA?
USS debt is rated at BB- by S&P and that is up since NS' offer in Dec-23. This means it is still costly for USS to borrow to improve its facilities and technology. NS can provide access to lower cost financing, and with that, improve USS and improve its profitability. The difference in profitability is $$$ that would not be there without the NS investment, and therefore that increase in profit could flow back to NS without a cost to the USA.
What do you think will happen to the money current USS stockholders will receive from the sale to NS? More than $800 million of that will flow to the US Treasury as capital gains tax, and the remaining $14 billion can be reinvested in the USA in areas more profitable than the current 0 to 4.5% return of the integrated USA steel producers.
And put this in perspective. US Steel supplies less than 10% of the steel in the USA in 2023.
Did you complain and object when Wilbur Ross/ International Steel Group founder and Trump's first Secretary of Commerce sold the former Bethlehem Steel and LTV Steel to Mittal Steel of India/ Luxemburg? Did you complain and object when a Mittal Steel affiliate bought Inland Steel?
@@somaday2595
While I am not a shareholder of USS, I gladly PURCHASE their products!
@@blaydCA At the current USS ROI, there is not much profit that would be flowing from the USA. If NS buys USS and improves its ROI and can actually make some gain on its investment, reduces CO2 emissions and secures future jobs, isn't that a win-win?
People need to ask a big important question who bought all the machines of all the Mills in the Mon Valley Pittsburgh West Virginia and Ohio when the Mills closed down. What Foreign countries bought that Machinery and what did they do with it.
The Dissolution of Bethlehem Steel in the 2000's is already a travesty and hard lesson for US industry. Nippon Steel has a good track record of not just shutting down and consolidating at the first opportunity. We would need immediate and ongoing investments to modernise and keep US Steel competitive.
Without investments, some of the Mills will have to be closed down or be sold to Clifford, who will close it down and consolidate. Nippon Steel is the best partner I see on the horizon for US Steel.
As explained in this video, US steel leaders failed to invest in the future. Now it’s too late. So they want to make a slick deal and exit with tons of money and kudos. They should let US steel go bankrupt and loose all their money in shares. That’s the only thing they understand. Then a US company can take over it… or even Nippon. By then, it doesn’t matter.
@TheBooban I see, well not that I can't understand, but I was paid 20$ for each comment I post on videos about this topic. Made a 160 bucks for 5 minutes of work.
@@Elegant-Capybara that sounds ridiculous and you should post way more if true.
@@TheBooban Buddy, I'm lying down on my couch and enjoying the weekend, I have no interest in Biden or his policies or US Industry for that matter. I'm in a few telegram groups where they hire and pay people for this sorta thing. Let's see, there are about 250 people in the group that posted the "job," about 30 people responded with screenshots and links to the comments for verification. I did my little comment spree, posted the proof, and 10 minutes later, I have 160 bucks Venmo'd to my acct. And this isn't something new, neither for me nor for members of the group. Normally, they wait 48-72 hours before crediting the money, so people usually refrain from deleting their comments or such, today, it took less than 20 minutes, and I wouldn't care if they kicked me off the group, there are several such groups. If you have an old active account that hasn't outright posted bot content, there's plenty of "jobs" to go around.
@@TheBooban One comment per video from each channel was what's required. Most of the time, they don't want you to overdo it, or they could've just hired bots for mass spamming. They want things to look organic, you can check some other videos on this topic from other channels and you might find my comment.
I have worked for a defense contractor and steel is crucial for the military.
Too many low productivity corporations in America. It takes imagination education and investment to raise the productivity of run down corporates. Politicians protecting against real competition will only pass the buck. Like GM there is a huge modernisation opportunity at US Steel. Such as Green Hydrogen to produce green steel. Less polution less use of blast furnaces and a better quality output.
The Nippon Steel acquisition of U.S. Steel is fundamentally a black and white issue, yet sadly, some Americans have been brainwashed by short-term benefits.
This isn't just about technological innovation or job opportunities - it's about corporate ownership. Nippon Steel isn't simply seeking a mutually beneficial relationship with the U.S.; rather, they could leverage U.S. Steel's existing domestic advantages across various sectors, and might even pressure the U.S. government for concessions. As for those short-term benefits, they're all subject to change. Besides, even Nippon Steel itself has faced management issues - who can guarantee these short-term benefits will last forever?
NS appears to be in a position to economically reduce CO2 emissions and improve blast furnace operation fairly quickly and can bring the money needed to do this quickly. So even if USS could do this on its own, it would more years down the road and thus less likely. The current easiest road to assuring it stays in business without NS is pursue the Big River Steel direction, which is world class electric furnace tech laid out by a former CEO of Nucor. If the NS buyout succeeds, maybe the Granite City blast furnace operation could be revamped and revived to supply iron to Big River.
@@somaday2595
So you want to rely on foreign companies to strengthen America? I thought independence and self-reliance were the American spirit.
If US Steel gets acquired by Nippon Steel, what you described could certainly happen, there's no issue with that, but there's no such thing as a free lunch. Nippon Steel is ultimately a for-profit organization, so this would not only mean US Steel is no longer American-owned, but Japanese companies would similarly find ways to pass their investment costs back to America, just like Britain did in the past.
I believe it would be better to spend more time having the US government support US Steel's industrial upgrade, or to coordinate mutually beneficial parallel plans with Nippon Steel. The overall benefits and profits may not necessarily be worse than having them distributed by foreign entities.
@@專一 My comments are objective and not emotional. Who do you think sold the former Bethlehem Steel, LTV Steel and Acme to Mittal? What became of that? Did the USA suffer? Investing $14+ billion into the USA economy should have quelled any of your doubts along with $790+ million collecting in capital gains tax by the US Treasury if the NS deal succeeds. USS has less than 10% USA of the market. that amount can be covered by the excess capacity at Cleveland Cliffs. Without the buyout, the chances of slowing shuttering the USS blast furnaces is more likely. So which makes for a stronger USS?
The USA govt cannot discriminate as to which company makes steel. And USS had returned less than half the ROI as the average S&P 500 company, so that is a losing proposition. Use NS to finance and improve the tech and efficiency.
Re: "who can guarantee these short-term benefits will last forever?" I do not know of anyone who can, although USW's McCall asks NS to guarantee the future 10 years from now, something he fails to ask of Cleveland Cliff's Goncalves. What industry can truly guarantee forever benefits?
@@專一 I disagree, but would like to say that your argument is a lot better thought out than several of the others on this video.
Japan is one of the closest allies the US has. Letting US Steel collapse is a much bigger national security risk. Further, the short term benefits @somaday2595 pointed out are also long term in that they are modernizing the facilities.
A foreign company will own one of the last American steel companies. How is this not a national security issue? Japan and US are allies but they don’t share all foreign policy goals. If convenient to Japan they will screw over the American company and workers if they want to. It’s risky having one of the last companies in such a critical strategic industry being in the hands of foreigners.
if USW wants to keep USS american owned. maybe they should throw out a comepetitve bid. how about that. I cant take this political medelling in the economy. The steel business is already hamptered enough by regulations. Let the sale be rendered.
They should have dual listed the company and then I wouldn't see a problem
All the better to have USS close… let Japan be a major player outside of the BRICS.
You know what they say about BRICS
B-Broke
R-Retards
I-In need of
C-Chinese
S-Support
These remaining PA plants are using recycled steel and making new products. The US does little mining, coal or iron ore and the foundries are gone. If we really want to help get our steel production going again, build new mills open the foundries, and start mining again. Lets go!! 🇺🇸
Where do you think the raw materials fed to the US Steel, Cleveland Cliffs and Arcelor Mittal blast furnaces originate???
@@somaday2595 C-C is not even fully American.
Attempt at global monopolies on steel..
Cleveland cliffs needs to buy it
The CEO already said USS is not worth what Nippon Steel is paying so he will not even consider buying. In fact, he implied that he would rather throw USS under the bus then let Nippon Steel save USS.
Japan is more protectionist than any other country. Try to sell something there. Make Japan 52 nd state of US and we can approve it.
オマエの一部になる必要はまったくないな。わははは
Made in America eats first at the table of MAGA. 🤑🇺🇸🥳
They can come to Northern Ontario where the iron and other metals are found. They can build their steel mills just miles from the smelters. Vale Canada Limited is a Brazilian company and they own the mining rights to billions worth of proven minerals. I would have no problem with Canada being part of that dead.
Japan will just bring Nippon Steel to America watch.
Like Water, Power grid, they are critical to national security.
If the Demand is here in the US ? We move it to Japan and then Sell Steel back to the US ? AT a higher price? LOL
😂if USS wanted to buy NIPPON... JAPAN would
Say... HELL NO, YANKEE.
😂⚠️🇮🇳⚠️ in a few years , Japan will have India as a major competitor. Japan's leaders are a kite in a hurricane!
India already has the second highest steel capacity after China.
The United States and Japan have an extremely close alliance and friendship , however the United States must first think about it’s own best interest’s first .
On the surface it would appear to be in the best interest of both Nations to allow this deal to happen , but when you look deeper at this especially in the United States this is not something that is in the best interest of the United States.
There’s currently a revitalization of the American people with regards to American independence for the United States to be able to stand independently from other country’s around the world , to produce and consume American made products.
Putting America 🇺🇸 first , American jobs first , American economy first and so on , a deal such as this is counterintuitive to those ideals …
And personally I never believed it possible but for once Biden and Trump both are in agreement on this , and as much as I personally embrace the Japanese People and the Nation of Japan 🇯🇵 I can’t and will not agree to a deal like this at this time , The American 🇺🇸 people must concentrate on the America first ideology …..
So Arcelor Mittal should be forced to sell its Indiana Harbor steel mill to a US based company?
So Slovakia should force US Steel to sell its Košice Works? Stellantis should be forced to sell Chrysler? BP should be forced to divest what were Standard Oil of Indiana/ Amoco and Standard Oil of Ohio and Venezuela should be forced to sell Citgo to USA owners. These companies have far more impact on the USA economy than US Steel with its 10% of the USA steel market.
-You think it is okay to screw employees and retirees holding US Steel stock out of their gain?
-The USW should have pushed for an employee buyout of US Steel in 2020 when its market capital value was less than $2 billion.
-How much do you think the US Treasury would have taken in through capital gains tax on this sale? How many new jobs could be created by $14+ billion of foreign capital injected into a company that has returned less than 3% ROI to its owners over the last 20 years?
OK I got it.
Lets ask all foreign entities to stop investing in US.
Japan must sell ALL of its US government bonds.
Lets see what happens to US..
Biden told Kishida....you must know your place. Be quiet....
It is a two-way street, the same thing happened when Foxconn tryed to take stake in Nissan, financially troubled automaker,The Ministry of Economy, Trade and Industry of Japan has forced Honda to merger with Nissan in a hurry, in order to prevent and avoid a takeover of Nissan by a foreign company. 😀
Japan's Ministry of Economy, Trade and Industry has done nothing special. Honda and Nissan have merged independently; US Steel is in favor of a takeover, but Nissan does not want a merger. There is a big difference. Please continue to share your knowledge from the internet with others. In the US it will be considered smart.
@@3n-xk4ie -The stock holders in the comnpany are in favor, of course, because they want to make a lot of money easily and quickly.
@ それは悪いことなの？雇用も保証されるしお金も入る。経営者だけでなく、従業員も喜ぶ。大金を稼ぎたいと考えることの何がだめなんだよ。アメリカって社会主義国家だっけ？
Nippon deal was blocked this morning ..KEEP IT AMERICAN
PROBABLY WONT BE AMERICA AFTER 4 YEARS.
Keep it bankrupt you bozo. Nippon Steel is their only hope, Japan is a close ally of the United States, will keep jobs, and unlike greedy Western maximalist capitalism, you can trust the Japanese to stick to the deal and keep their word.
All this does is cost Americans jobs and disrespect our Japanese allies. Blocking this deal is disgraceful.
maybe an American shark tank will help find it
“Find it?” Why? Was it lost?
Whats the majority concensus on the deal?
Committee on Foreign Investment should just be called COFI, not CFIUS.
It's all about national security. No matter how friendly the buyer is, they can control that product.
Timely attempt to tailgate the projected economic boom of Trump MAGA 2025🥳🇺🇸
The strong survive and the rest will get subsides which makes them weaker.
今回の買収で、一番強いのは残念ながら中国だ。
I just lost my respect towards our own politics. Japan to call us hypocrits because we invite foreign companies to build in America with the tariffs but we block then from doing from doing so.😂😂😂
FJB did the right thing to keep US Steel American. Nippon Steel could be a trojan horse for china.
you tripping. japan and china are like sworn enemy.
Braindead take. Japan and China hate each other and Japan views China as a threat.
Dating back to the days of Imperial China, Japan refused to become a Chinese vassal state. And you expect us to believe they're gonna do it now? Sure buddy.
Nippon Steel buying US Steel will ruin US Steel because it will make the US Steels profits go to Japan rather than stay in the US where they can be obtained by the government through taxes so that the government can fund infastructure clean energy and poverty alleviation.
Anyone who supports Nippon Steels bid to acquire US Steel is either a Nippon shareholder or misinformed.
Honda autos pays wages and taxes in USA....
@ Companies do not pay taxes, citizens do.
Someone GETS IT!!!
Lmao. You don’t even make any sense
@@1two3four5sixer If Nippon Steel acquires US Steel, US Steels profits will go to Japan because Nippon Steel is a Japanese company. If US Steel remains American owned, the owners could be taxed more because they are rich. The money made by increasing taxes on American owners of US Steel could be used to pay for things like infrastructure, clean energy or poverty alleviation.
Good for USA 🇺🇲!
Modernize the Metallurgical Innovations with the Best of Refineries in Place for Industrial Output of Metal and Alloys for Affordable and Reasonable Prices meant towards Domestic Markets 💹 and Exports as well.
Does place USA 🇺🇲 in the World Map of Green Metallurgy Industry.
USA is bullying their own ally 🤣🤣
@@yeetboi268 One tiny piece of the US is. That's true enough. Mostly it's poorly thought out fear mongering. I encourage you to read some of the other comments on this video. They are unhinged.