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The Biden administration should oppose any Cleveland-Cliffs effort (NYSE: CLF) to buy US Steel (X) because a deal could result in anticompetitive pricing for vehicles, the Alliance for Automotive Innovation said on Friday, according to Reuters.
A merger would take place between Between 65% and 90% of the steel used in vehicles is under the control of a single company, the group’s chief executive, 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 a deal that creates a concentration of the domestic steel production market in a single company.”
A merger between Cleveland-Cliffs (CLF) and US Steel (X) would control “100% of the domestic electrical steel needed for electric vehicle motors and electric vehicle manufacturing,” the group said.