Biden Pressured by Environmentalists over US Steel Takeover Biden Pressured by Environmentalists over US Steel Takeover

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By Ronald Tech

large bowl of molten metal at a steel mill. Steel production.

Environmental groups are urging President Biden to intervene in US Steel’s (NYSE:X) acquisition by Nippon Steel (OTCPK:NISTF) (OTCPK:NPSCY), citing the potential setback to America’s climate change efforts, as reported by The New York Times on Friday.

According to environmental activists, the merger would unite two steel giants that have been slow in transitioning away from fossil fuels, heavily relying on coal-powered blast furnaces. As a result, they are trailing competitors in embracing cleaner energy sources.

The New York Times highlighted that three US Steel (X) facilities in Pennsylvania, Indiana, and Illinois collectively emit more greenhouse gases annually than a comparable group of coal-fired power plants.

Environmental organizations argue that the acquisition could perpetuate high emissions at US Steel’s (X) coal-powered plants, instead of potentially lowering them if the company were purchased by a buyer more committed to adopting advanced emissions-reducing technologies.

While Biden administration officials have acknowledged the likelihood of scrutinizing the merger through the Committee on Foreign Investment in the United States, there are concerns regarding the potential impediments of blocking the sale of a US company, particularly for climate-related reasons, to a strong ally like Japan.

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