Now the American business dominates is concerned over the prospects of a sale of USS and has contacted the treasury secretary Janet Yellen with the message that political pressure is a threat to the deal and risky for the economy. The divestment of the historic American company has been in the news for the last several weeks with more than one party expressing interest in acquiring the company.
The Sale of US Steel
The America’s sale of US steel has been highly politicized and many people have chimed in to express how the deal will affect them. The such business Mutable has been a central part of American industrial market for over one hundred years; still, during the recent years it experiences certain performance decline, which has raised doubts pertiend to its future. Many firms and foreign investor have shown interest in the acquisition of US Steel but the move has faced opposition from some members of the US congress and industry magnates.
Political Pressure
Though, certain congressional members as well as the business fraternity is telling the government not to exert political pressure on the company lest the deal will be off; while some of them insisting on the company being in American ownership. They say that this pressure could result into a long and unpredictable process which would have negative implications for the company and the economy at large. Its literate: The last thing we need is for politicians to get involved in the sale of US Steel according to one industry insider.
Economic Consequences
The divestment in US Steel carries huge macro economic consequences, given the company’s shareholders millions of employees across America and annual revenues greater than billions of dollars. In this case, if the deal fails, it results in huge losses, including loss of employment to workers and even closing down ofplants; consequently, exerting pressure on the economy. ‘Expectations that its stakeholders will just watch US Steel go down the drain are not warranted because it far exceeds the company in terms of the supply chain and affected communities,’ the economist added. “If for instance the deal is not realized then the result is likely to have effect on the economy. ”
National Security Concerns
There are members of the congress who have expressed concern that the steel producer might be sold to a party whose acquisition might prove to be a threat to America’s national security because it might hinder the country from producing enough of the vital metal in case of hostilities. But, industry leaders reasoning that this is an illusion and that this change of ownership will not impact the production capability of the company. ”The fact that they say that sale of US Steel would be a threat to national security is hogwash,” an industry executive went on to state. The key point is that it doesn’t matter who the owner of the company is, its production capabilities remain the same.
The Role of the Treasury Department
The Department of the Treasury and especially its head, Janet Yellen, has a tremendous amount of work to do in the sale of US Steel. It is this department’s task to analyze the deal and understand that it is in the best interest of the country. However, the business community is on the view that political pressure might likelihood distort the achievement of the department. Most stakeholders in the industry agreed with an industry insider who said: ‘The Treasury Department should devoid politics in its ‘business’ and make a decision that would benefit the country at large.
The Impact on the Steel Industry
The situation of the sale of US Steel has plenty of ramifications for the global steel market as a whole. If the deal is not signed then it can result in reducing investments and innovation in the industry and hence harm the American competitiveness. ”The industry is important in the US and the sale of US Steel to the United States economy is a value to it”, remarked an industry official.
Conclusion
The divestment of US Steel is a sensitive one that attracts several actors into voicing what might happen in the face of the deal. The business players are now cautioning that pressure in the political arena may lead to scuttling of the deal with potentially disastrous consequences on the economy. The very context of the story underlines that the Treasury Department has to be free of political involvement and make a proper decision to meet the interests of the nation.
