Taro Kono, an executive of Japan's ruling party, said on Thursday that government decisions should not be distorted by efforts to win votes from labor unions, when asked about reports that U.S. President Joe Biden will block Nippon Steel's acquisition of U.S. Steel.
Governments should not intervene in individual deals as buyouts can benefit targeted companies and regions, Kono said in a press conference where he laid out policy pledges for the Liberal Democratic Party's leadership race that he hopes to win.
The Liberal Democratic Party's parliamentary control means its leader becomes the prime minister of Japan.
Democratic presidential candidate Kamala Harris said on Monday that U.S. Steel should remain in domestic hands, making a pitch alongside President Joe Biden to working-class voters in Pennsylvania who are also being courted by her rival, former Republican President Donald Trump.
Harris used campaign events on Monday in Michigan and Pennsylvania, two battleground states, to court the crucial labor vote. At a packed union hall in Pittsburgh, she echoed Biden's concern over U.S. Steel Corp being acquired by Japan's Nippon Steel.
"U.S. Steel is a historic American company, and it is vital for our nation to maintain strong American steel companies," Harris said at the rally. "U.S. Steel should remain American-owned and American-operated."
Trump has said he would move to block the U.S. Steel deal, a potential merger that has stirred anxiety among some unionized workers.
U.S. Steel said it was committed to the deal with Nippon Steel. Both companies aim to close the deal by the end of the year depending on regulatory approvals.
In emailed comments, Nippon Steel said that acquisition of U.S. Steel will revitalize the American steel rust belt, benefit local workers and communities along with national security "in a way no other alternative can."
"We believe that a fair and objective regulatory review process will support this outcome, and we look forward to closing the transaction as soon as possible," it said.
© Thomson Reuters 2024.
13 Comments
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dagon
According to Taro Kono, labor unions are the cause of Japan's economic woes.
Not the BOJ weak yen policies, egregious corporate welfare to Japan Inc and corporate wage theft.
If I was a Japanese voter: Hard pass
M3M3M3
Of all the LDP hopefuls, Kono is by far the worst.
obladi
It looks like Harris, Trump and even Kono are going to politicize the acquisition of U.S. Steel. I doubt that any of them will care about the issue after their respective elections.
Jim
As if the Japanese government never intervened in similar situations in the past…such hypocrisy!
Yubaru
What a hypocrite! Then why not advocate for the Japanese government pulling itself out of all the "private" companies in Japan that it holds a controlling interest in? KDD, NTT, JR, JP and others.
Roberto Figari
When national security is involved, the government must intervene.
Moonraker
Just saying that sounds like an intervention on the side of Nippon Steel.
Wasn't there the whiff of Japanese government intervention over Nissan?
リッチ
Yes. Lets have the government stay out of it when it helps business or artificially helping the weak yen.
Aoi Azuuri
Whoever become leader, LDP is corruption itself. they surely continue to exploit and victimize citizen from now on.
Moonraker
Must be a lot of LDP, and Kono, supporters lurking about in their rooms.
garypen
*Taro Kono, ...said on Thursday that government decisions should not be distorted by efforts to win votes from *labor unions...
*"Governments should not intervene in individual deals as buyouts can benefit targeted companies and regions", Kono said*
I used to not dislike him as much as I disliked the typical JIminto politician. But, it seems he is just another JIminto politician with that attitude of corporations' interests are more important than workers' interests.
Screw that.
Grampus
Watch the BBC interview with him on HardTalk. They have a Japanese version, too. It tells you all you need to know about Kono. No one in their right mind would choose him, which means he'll get chosen.
voiceofokinawa
Nippon Steel executives seem to have thought that they could buy out U.S. Steel without any hitch because the two countries, they thought, were allies with Japan probably a 52nd state of the great United States of America.