Cleveland-Cliffs chief executive blames US ‘weakness’ on rival bid plans for keeping Nippon deal alive

Cleveland-Cliffs CEO Lorenzo Goncalves is blaming “weakness” for surviving Nippon Steel’s massive bid to acquire American Steel, complicating the company’s plans to launch a rival bid as the acquisition is under scrutiny.

“Secretary of State Tony Blinken went on a farewell visit to Japan. And there the Japanese prime minister was very upset, apparently, and he said bad things about the president of the United States. Anthony Blinken basically said, ‘Yeah, that’s very sad,'” he told FOX Business on Tuesday.

“You show weakness, they take advantage,” he emphasized.

Before his farewell visit to Japan, Blinken blocked Nippon Steel’s $14 billion bid and urged U.S. Steel and Nippon to “completely and permanently” abandon the deal by Feb. 2.

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However, the Committee on Foreign Investment in the United States (CFIUS) has extended the deadline to June 18.

“The CIFUs have given them a lifeline until June 18. I hope that the new CIFUs will go forward with the members of the Trump cabinet and change the basis of national security and re-authorize the agreement. I think, because I know President Trump and I know how the thinking works. Maybe the new CIFUs will go forward on February 2nd. They bring an end date, and we have to make American steel great again, Goncalves added.

Nippon’s “steer” decision has set aside plans for a rival bid by Ohio-based Cleveland-Cliffs. Kyodo News of Japan The company insists it is “the only partner” pursuing the purchase despite objections from the White House.

A U.S. Steel spokeswoman issued the following statement, on the subject of Goncalves’ Monday press conference that he was interested in buying U.S. steel and attacked Japan as “evil.”

U.S. Steel, Nippon Steel bid to block acquisitions

Logos of Nippon Steel Corporation are seen at the company’s headquarters in Tokyo, Japan on March 18, 2019. (Reuters/Yuka Obayashi/File Photo/Reuters Photos)

“Lourenko Goncalves’ press conference comments are yet another attempt to divert attention away from illegal and monopolistic conspiracies – all while Cleveland-Cliffs’ performance is deteriorating.

“US Steel has a merger agreement with Nippon Steel and remains committed to completion. The Nippon Steel partnership alone will deliver $55 per share to our shareholders and guarantee the significant capital investments and technology sharing needed to ensure a strong US Steel for generations to come. Protecting jobs.”

“We are deeply saddened by Mr. Goncalves’ outstanding local leadership across Pennsylvania, the members of the USW (United Steel Workers) who support the alliance of US Steel and Nippon Steel, and the verbal attacks on the people of Japan – a vital American ally.”

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