Many mergers are announced and some go through, some do not, and some become political because jobs and traditions are seen in the roots of the company. Every community needs economic activity to grow and maintain services for the people in the area. The longer the company is in business, the more people are attached to it. Then a merger is announced, and people and politicians react. The biggest story in the news has been the US Steel sale to Nippon Steel.

In an article by Danielle Kaye and Laren Hirsch of the New York Times News Service, a few months ago, Cleveland-Cliffs announced a possible buyout of US Steel for $7 billion, Nippon Steel increased the offer to $15 billion.

The Board of Directors of US Steel believed the offer by Nippon Steel was the best one, then politicians had their say. President Joe Biden said no for a number of reasons, including national security. President Trump said he supports steel workers.

Lourenco Goncalves, CEO of Cleveland-Cliffs is resubmitting his possible merger.

There is always a wrinkle in the cloth, and US Steel and Nippon Steel have sued the US government.

US Steel was once the world’s largest steel producer, but the company has fallen in global rankings in recent years. Concerns about its long-term future are rooted in a failure to quickly adopt alternatives to traditional mills that are more energy-efficient and cost-effective. US Steel has argued Nippon is the only buyer that can make substantial investments in multiple steel mills and protect jobs.

It is expected that President Trump’s administration would take a less aggressive approach to merger enforcement than the Biden administration predecessors.

Linking to dividend paying stocks, when a merger is announced, investors have a wide range of interests from short-term to long-term. Politicians change every 4 years or less, but they have a voice which represents their districts and/or state. Often times investors can outlast the outside voices as long as the company is making a profit or it prudent to find alternatives and watch the action from the outside and then buy back at lower levels.

There are more questions than answers, till the next time – to raising questions.