KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The United Steelworkers (USW) union has declared its steadfast opposition to Nippon Steel Corp's $14.1 billion (RM60.9 billion) takeover bid for US Steel Corp, describing the acquisition as a "doomed deal." The union has pledged to resist any form of foreign ownership of the company, including this takeover by the Japanese corporation.
The USW's memo, addressed to “interested parties,” including the White House, comes amid a heated public struggle over the future of the deal, particularly in light of President Joe Biden’s potential threat to block it.
Union Stands Firm Against Foreign Ownership
"In its desperate attempt to save a doomed deal, US Steel executives have turned to one of the oldest tricks in the book — attempting to divide USW members and retirees to distract us from the multimillion-dollar payoffs they stand to gain personally," USW President Dave McCall wrote in the memo. "Union members and retirees remain steadfast in our opposition."
Earlier this week, both Nippon Steel and US Steel released their correspondence with the USW to show how union leaders have rejected efforts to negotiate an agreement. The Pittsburgh-based US Steel warned of potential plant closures if the sale falls through, leading some workers to express support for a new owner.
US Steel’s Response and Investment Promise
US Steel responded by stating that they had negotiated a deal with a partner willing to bring $2.7 billion of transformative investments into USW-represented facilities, ensuring their operation for decades to come. Nippon Steel maintained that their deal "will benefit American workers, local communities, and national security in a way no other alternative can."
Political Ramifications and Biden's Position
President Biden is preparing to block the deal once it is referred to him by the Committee on Foreign Investment in the US (CFIUS), as reported by people familiar with the matter. As of Wednesday, the matter was still under review by the CFIUS. Biden, along with union leaders, has reiterated that US Steel should remain domestically owned.
Vice President Kamala Harris also voiced her opposition to foreign ownership on Labor Day, while former President Donald Trump has shared a similar stance. The debate unfolds as Pennsylvania, where US Steel is headquartered, emerges as a key battleground in the upcoming November presidential election.
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