Vice President Kamala Harris is likely to speak out against Nippon Steel’s (JP:5401) $14 billion takeover of U.S. Steel (X) when she visits Pittsburgh on Monday, according to Bloomberg. At a Labor Day union event, Harris is expected to emphasize that U.S. Steel should stay American-owned and operated. Pittsburgh has been vocal in opposing the deal since it is home to U.S. Steel and the United Steelworkers union and will make Harris’ comments a hot topic.
What’s interesting is that this stance from Harris is the opposite of that of her running mate, Minnesota Governor Tim Walz, who earlier supported the acquisition. President Joe Biden has also said he is against the deal, although it’s worth mentioning he hasn’t formally called to block it. Adding to the debate, former President Donald Trump has vowed to block the deal if he wins the presidency.
Unsurprisingly, a U.S. Steel spokesperson defended the merger by saying that it would boost American jobs and strengthen the steel industry against global competition, especially from China. In addition, Nippon Steel announced an extra $1.3 billion investment in U.S. Steel’s facilities last week in an effort to reinforce its commitment to the company and its workers. U.S. Steel’s CEO, David Burritt, praised these investments as a sign of Nippon Steel’s dedication to supporting the American steel industry.
Is U.S. Steel Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on X stock based on three Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 22% year-to-date decline, the average X price target of $45.25 per share implies 19.36% upside potential.
