The White House, led by President Joe Biden, is indicating a potential roadblock to the acquisition of U.S. Steel by Nippon Steel, as a final decision on the merger draws near. Reports from The Washington Post reveal that Biden is prepared to intervene to prevent the deal from progressing, aligning with objections raised by the United Steelworkers union and highlighting the significance of U.S. Steel as a symbol of American industrial prowess, particularly in Pennsylvania.
President Biden's stance against the merger has garnered support from various quarters, including Vice President Kamala Harris and former President Donald Trump, with concerns extending to the potential effects on the domestic manufacturing sector. The pushback against the deal has put U.S. Steel in a challenging position, reflected by a significant drop in stock value following news of Biden's intention to block the merger. Despite assertions from U.S. Steel that there are no national security issues associated with the acquisition due to Japan's status as a key ally, the Biden administration seems poised to prioritize the protection of American manufacturing interests.