The fate of the US Steel takeover may depend on the words of the union boss.

David McCall has a unique opportunity to do right by America's industrial workers, and he's ready to seize the moment.


As head of the United Steelworkers, McCall finds himself in an unexpected place of power. Labor groups have traditionally had little influence on corporate takeovers in the United States. But 2024 is certainly no ordinary year. So, thanks to a growing political maelstrom that has put the steelmaker at the center of election rhetoric, McCall is now one of the most important voices that could help decide the fate of the proposed Nippon Steel Corp. takeover of the legendary United States for $14 billion. Steel Corp.

McCall prepares to fight

"The deal itself right now, as announced, there is no way I would accept it," he said in a recent interview, indicating that he is willing to go to the brink - even if it means terminating the deal - to make sure he can secure concessions , which he achieves for the members of his union.

The union has no formal right to simply block a proposal that US Steel has accepted. What he does have is political leverage.

The influence of the Union of Steelworkers (USW) is stronger now than at any time in recent memory. Joe Biden has called himself the most pro-union president in history, but Donald Trump has sought to undermine his support for unions by appealing to rank-and-file auto workers and union members who have resented the administration's clean energy program, as well as other policies. Union voters are seen as one of the key decision-making blocs in the November presidential election.

Nippon's bid to acquire US Steel is pending review by the Committee on Foreign Investment in the United States (CFIUS), a process shrouded in secrecy. Biden allies have called on the administration to cancel the deal due to national security concerns (despite Japan being a close ally) and the threat to steel unions.

In the end, the final decision may come down to a signal to the White House about whether the union likes the agreement. The USW received “personal assurances” that Biden “has our back,” according to a February statement.

This unique perspective underscores why interviews with more than two dozen investors, legal experts, steel consumers, brokers, servicers, analysts and executives paint a picture of an industry that rests on the words of one man: McCall.