00:00 Spokesman a
A potential steel deal in the US has long been in creation. We have seen a jump of over 20% in steel reserves in the United States, reflecting optimism as Nippon Steel progresses. Late last week, President Trump made news by reviving the deal and supporting a partnership with Japanese Nippon Steel. According to this plan, he will remain headquartered in Pittsburgh, Pennsylvania with US CEO and a board with majority monitoring operations in the United States. At that time, Nippon will invest $ 14 billion, including the construction of a new steel mill in the United States and the modernization of existing plants. The agreement will deal with the problems of national security while allowing foreign investment. Our next guest follows all this very closely. He is a business editor of Axios, Dan Primak. Dan, it’s always good to see you. So you argue in your piece, Dan. You say listening, this is actually all that comes in, I think Dan, you call it the ridiculous scene. Correct me if I’m wrong. What did you mean by this, Dan?
02:01 And primack
I want to say, we get a message from Trump and something from the US steel last Friday, which says there is a quote partnership. They do not mention the acquisition of $ 55 per share, which is supposedly the shareholders of the US steel, but maybe not because we have not called it an acquisition. And then today, Tuesday, when the markets open again, US stocks Steel continue to trade on the New York Stock Exchange, which decides not to stop it or even explain why they have not stopped it. So everyone thinks there is a deal, but it is not 100% secure and we have not seen any of the real details. You know, you’re talking about the $ 14 billion then promised, maybe, is it guaranteed? If so, how? The more promises were just that, they were promises, but Nipon could save those if he wanted for no specific reason. So indeed, this is the most sophisticated thing. We have a massive, large -scale acquisition, the acquisition of $ 15 billion, which no one at the moment recognizes as an acquisition, and the American steel does not say it mainly because they do not want to step on Trump’s fingers because he has this big press conference on Friday.
04:01 Spokesman a
Yes, do you not feel to some extent, Dan, as a little face saving, but you also almost look at the result on the market to say, oh well, so we call it a partnership, but effectively the deal will close, as is initially envisaged during politics. So, the UH president can say 70,000 jobs, $ 14 billion, you know, the Pittsburgh plant. Oh, so look at this until I just just let the deal close. It is felt that the market says.
05:09 And primack
In general, yes, although it is disturbing to American steel or American steel, it must be embarrassed that it feels that it should pull the cow in this sense. And as for the thing in Pittsburgh, it was a big message, part of the message on Friday, wasn’t it? The headquarters will remain in Pittsburgh. The seat would always remain in Pittsburgh. It was part of the deal. The only reason that it would move from Pittsburgh or that the US steel even threatened that it was if the deal did not close. So this has never been a source of negotiations in the first place.
06:00 Spokesman a
Dan, I heard the Dave McCormik Senator interviews this morning and he talks about how the US CEO will be. He said there would be advice for a majority in the United States. The US will have a gold share and the absorption of Nippon Steel by US Steel. Is this what Nipon has already signed all this, Dan?
06:49 And primack
We don’t know, because they haven’t said anything either. Oh, so we’re not exactly sure. And then let’s assume that what McCormik said is true and that everything is happening. It is not yet clear why something of this is necessarily relevant. Now, to some extent, would you prefer to have local property or not local property? Local US steel management? Of course, it is closer to the workers, it is closer to the product, it is closer to the customer, it must be more responsive. However, return to those $ 14 billion a promised investment. Just because you have the US CEO and the US subsidiary, they can’t download, it’s not like they have access to bank accounts, they can’t withdraw this money if they are not upcoming. This money still comes from Japan or does not come from Japan. This gold share is not really worth it when it comes to the money that comes or future plans.
08:06 Spokesman a
So do you think this story is an incredibly long and very strange story that ends at last? As what will you look at or think we have a few more twists and turns? Because, you know, early with the Prime Minister of Japan, Trump said, you know, it will be an investment. You know, the companies knew nothing about it. They never commented on this comment and he just went into the ether. Are we finally in the end game or are we waiting for a few more?
09:04 And primack
I think with all things Trump and any kind of deal he negotiates or not negotiate, somehow have to wait until he is over. I will tell you that as of this morning, up to the world, it was really completely in the dark. All they knew were public statements. Over the weekend, they had no back -channel communications. So I think we still have to wait. I will say that the bigger picture thing here outside the United States is what means that for transactions with future deals, making cross-border transactions, especially for deals that may have consequences for national security, since one of the poems I would think of, if there is any care of the American company, I will look at it and will look at it and will look so That we will keep aside.