There has been a rare showing of bipartisanship over the past month; unfortunately, the consensus is founded on economic myths that, if acted upon, would cost jobs, increase inflationary pressures, and weaken economic growth.
At issue is Nippon Steel’s offer to purchase U.S. Steel for $14.9 billion – a surprisingly generous bid that, when offered, was 40% above U.S. Steel’s stock price. U.S. Steel, once the largest steel manufacturer in the world, is a shell of its former self. As of 2022, the company has fallen to the 27th largest steel manufacturer in the world and, more troublingly, is no longer the technological leader of the sector.
The company has impressive assets, however, that can be valuable if controlled by the right suitor. And by many measures, Nippon Steel fits the bill. As the Atlantic Council argues, a merger between Nippon Steel and U.S. Steel
could unlock efficiency-promoting technology—including advances in green production techniques—while providing Nippon Steel with the size and resources necessary to act as a counterweight to Chinese dominance in the global steel industry.