Cleveland-Cliffs CEO Lourenco Goncalves on the status of the deal between U.S. Steel and Nippon Steel and Cleveland-Cliffs’ renewed effort to buy U.S. Steel.
Cleveland-Cliffs CEO Lourenco Goncalves is blaming “weakness” for keeping Nippon Steel’s massive bid to acquire U.S. Steel alive, complicating his company’s own plans for a rival bid as the acquisition remains in limbo.
“Tony Blinken, the secretary of state, went to a farewell visit to Japan. Over there, the prime minister of Japan was very upset, apparently, and he said bad things about the president of the United States. Antony Blinken basically said, ‘Yeah, that’s a sad thing,'” he told FOX Business on Tuesday.
“You show weakness, they take advantage,” he stressed.
President Biden blocked Nippon Steel’s $14 billion bid to acquire U.S. Steel before Blinken’s farewell visit to Japan, urging U.S. Steel and Nippon to “fully and permanently” abandon the deal by Feb. 2.
MIKE POMPEO DEFENDS US STEEL, NIPPON DEAL, URGES TRUMP TO DO THE SAME
Signage at the Cleveland Cliffs Cleveland Works steel mill facility in Cleveland, Ohio, US, on Monday, Oct. 21, 2024. (Dustin Franz/Bloomberg via Getty Images / Getty Images)
However, the Committee on Foreign Investment in the United States (CFIUS) extended the deadline to June 18.
“The CIFUs gave them a lifeline through June 18th on hopes that the new CIFUs with members of the incoming Trump Cabinet, will go ahead and change the basis of national security and reapprove the deal. I think, because I know President Trump and I know how his mindset works, probably the new CIFUs will go ahead and bring back the Feb. 2nd deadline, and then we’re going to go because we need to make American steel great again,” Goncalves added.
Nippon’s “steely” resolve has put a snag on Ohio-based Cleveland-Cliffs’ plans for a rival bid, with Japan’s Kyodo News reporting the company insists it “remains the only partner” pursuing the purchase despite opposition from the White House.
A spokesperson for U.S. Steel issued the following statement, responding to Goncalves’ Monday press conference on the topic, where he expressed interest in purchasing U.S. Steel and attacked Japan as “evil.”
US STEEL, NIPPON STEEL SUE BIDEN OVER BLOCKED ACQUISITION
The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. (REUTERS/Yuka Obayashi/File Photo / Reuters Photos)
“Lourenco Goncalves’ press conference remarks are another attempt to shift attention away from the illegal, monopolistic conspiracies he has engaged in – all in the face of declining performance at Cleveland-Cliffs.
“U.S. Steel has a merger agreement with Nippon Steel and remains committed to completing it. Only Nippon Steel’s partnership will deliver $55 per share to our shareholders and guarantee the significant capital investments and technology sharing needed to ensure a strong U.S. Steel for generations to come and protect jobs.”
“We are incredibly disappointed in the verbal attacks levied by Mr. Goncalves toward the outstanding local leadership across Pennsylvania, the many members of the USW [United Steel Workers] who have supported the combination of U. S. Steel and Nippon Steel, and the people of Japan – a critical U.S. ally.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Royal Palm Companies CEO Daniel Kodsi discusses whether President Biden is right to block Nippon’s acquisition of U.S. Steel on ‘Varney & Co.’
