00:00 Speaker a
A possible US steel transaction has been a long time. We have seen that US steel stocks exceeded 20%, reflecting optimism as Nippon Steel progress. At the end of last week, President Trump announced the news by revitalizing the agreement and supporting partnership with Japan’s Nippon Steel. According to this plan, it will remain headquarters in Pittsburgh, Pennsylvania with the American CEO and the Board, which includes the operation of the majority of the US majority. The $ 14 billion would then be invested by Nippon, including the construction of a new US steel mill and renovation of existing factories. The agreement would take into account national security issues while allowing foreign investment. Our other guest watched all this very closely. He is Dan Primack, Business Editor at Axios. Danes, it’s always good to see you. So you argue in your piece, Dan. You say listen that all of this comes, I think Dan, you called it a funny scene. Correct me if I’m wrong. What did you want, the Danes?
02:01 And primick
I mean for beginners, last Friday we receive a message from Trump and as if from US steel, saying that there is a quotation partnership. They do not mention about $ 55 for the acquisition of a promotion, which is allegedly received by US steel shareholders, but perhaps not because we have not called it a acquisition. UH and then today, when the markets are open, US steel promotions continue to trade in 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 an agreement, but there is no 100% real and we didn’t see any real detail. You know, you are talking about the fact that about $ 14 billion is promised then, maybe it is guaranteed? If so, how? Previous pledges were these, they were pledges, but Nippon could immerse themselves in those if they wanted it for no particular reason. So, this is the strangest thing. We have a huge, huge acquisition, a $ 15 billion acquisition that no one currently recognizes as acquisition, and US steel does not say it essentially because they do not want to step on a short leg because it has this great personal press conference on Friday.
04:01 Speaker a
Yes, do you feel like this to some extent, how it is a bit of saving your face, and you almost look at market results to say, OK, so we call it a partnership, but in fact the agreement will be completed as at first imagined, as in 2023. December So, UH President Trump can say $ 70,000 jobs, $ 14 billion, you know, headquarters in Pittsburgh. UH, so look at it, though basically I just allowed the deal to close. It looks like the market is saying it.
05:09 And primick
Basically, yes, although it is a shameful US steel or US steel that it must be shameful that she thinks it has a cow wearing in that sense. And when it comes to Pittsburgh, it was a big message, part of the Friday’s report, right? The headquarters will remain in Pittsburgh. The headquarters always remained in Pittsburgh. It was part of the agreement. The only reason she was about to move from Pittsburgh or that the US even threatened the US steel was if the deal did not close. So it has never been due to the source of negotiations.
06:00 Speaker a
Danes, I heard this morning an interview with UH senators Dave McCormick. He talked about how the US CEO will be there. He said there would be a US majority board. The US will have the Golden Part and Nippon Steel to take over the US steel. Is that exactly that Nippon has already signed all this, Dan?
06:49 And primick
We don’t know because they didn’t say anything either. UH, so we are not absolutely sure. And then let’s say what McCormick said is true and that everything happens. It is still unclear why any of them is necessarily important. To some extent, do you obviously have a place of ownership or non -local ownership? Local US steel management? Of course, it is closer to the staff, closer to the product, closer to the customer, should be responsive. But return to that $ 14 billion promised investment. Just because you have a US CEO and a subsidiary of the US U.S. Board, they cannot pull, it is not the case that they have access to bank accounts, they cannot withdraw that money if they do not. That money is still derived from Japan or not from Japan. That golden part isn’t really worth anything when it comes to that money or future plans.
08:06 Speaker a
So do you think this story is an incredibly long and very strange story that will finally end? How are you going to see if you think we have a few more turns? Cuz, you know, in the early Japanese Prime Minister, Trump said, you know, you know, it will be an investment. You know, companies didn’t know anything about it. They never commented on that comment and it just got into the air. Do we finally get involved in the game, or are we waiting for a couple more things?
09:04 And primick
I think that all things and all the things he agreed, he negotiated or negotiated, you have to wait for it to end. I will tell you that since this morning the steel staff union was definitely completely dark. All they knew were public statements. They had no Back Channel relationship over the weekend. So I think we still have to wait. I will say that a larger image outside the US is what it means to make future transactions, cross -border transactions, especially for transactions that may have the consequences of national security, because one of the qualities I think I would have thought if I was a former US foreign buyer.