Automakers group says Biden should oppose US Steel sale to Cleveland-Cliffs (NYSE:CLF)
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The Biden administration should oppose any effort by Cleveland-Cliffs (NYSE:CLF) to buy US Steel (X) because a deal could result in anti-competitive pricing for vehicles, the Alliance for Automotive Innovation said Friday, according to Reuters.
A merger would place between 65% and 90% of steel used in vehicles under the control of a single company, the group’s CEO John Bozzella said in a letter.
“If the administration has concerns about the Nippon Steel deal, it must seriously consider alternative outcomes,” said the group, which represents General Motors, Toyota, Hyundia, Volkswagen and others. “One option that should not be on the table is an arrangement that creates a market concentration of domestic steel production in a single company.”
A merger of Cleveland-Cliffs (CLF) and US Steel (X) would control “100% of the domestic electrical steel needed for electric vehicle motors and EV production,” the group said.
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