Published by: Rachel McGuire<>
25 Feb 2025 @ 18:40 UTC

Cleveland-Cliffs chief executive officer Lourenco Goncalves again emphasized his position on the proposed sale of US Steel to Japan-owned Nippon Steel, saying in an earnings call on Tuesday February 25 that he believed the deal would never close.

Our position is well known, and our conviction has never changed, Goncalves said. For Nippon Steel, it’s time to pack and go.
In the call, Goncalves described the stalled acquisition, which has been blocked by the US government, as a national security concern.
The inter-agency Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on the deal’s implication for national security, referring the final decision to then-President Joe Biden in December last year.
[Incumbent] President [Donald] Trump has said a number of times that Nippon Steel is an unacceptable buyer for a majority stake in US Steel, Goncalves said.
In a joint press conference with Japanese Prime Minster Shigeru Ishiba on February 7, Trump said that Nippon Steel would heavily invest in US Steel rather than acquire it.
Ishiba promised to invest $1 trillion into the US but did not specify how Nippon Steel would invest in US Steel.
Nippon Steel has previously promised multi-billion-dollar investments in US Steel, including upgrades to the steelmaker’s legacy assets, if it were successful in acquiring the company.
Cleveland-Cliffs was one of many US market participants to be vocal in their opposition to the deal. Investor firm Ancora published a letter on February 10 urging the US Steel board of directors to terminate the deal.
The president of the United Steelworkers (USW) trade union, David McCall, also opposed any Japanese investment in US Steel, saying on February 7 that we encourage President Trump to continue safeguarding the long-term future of the domestic steel industry by instead seeking American alternatives.
In a letter issued on February 25 by the USW, the union announced that it had filed charges with the National Labor Relations board protesting US Steel’s months-long campaign to intimidate workers, undermine our union, and discourage members from engaging in core, protected activity by voicing skepticism about a potential sale of [US Steel] to Nippon Steel.
Our union has flagged deep-seated concerns regarding Nippon [Steel]’s trade and labor practices, the effect of a transaction on workers, and the enforcement of successorship language in our [collective bargaining agreement], the letter said.
The USW alleged that US Steel has attempted to silence these viewpoints and undercut our collective power.