The White House May Block Nippon Steel's Acquisition of U.S. Steel
The White House is considering blocking the acquisition of U.S. Steel by Nippon Steel, according to a report by The Washington Post. The Committee on Foreign Investment in the United States (CFIUS) is nearing the end of its review of the proposed takeover, and President Biden is expected to receive their official recommendation soon.
President Biden has already expressed his opposition to the merger, aligning himself with the United Steelworkers union who also oppose the deal. This stance carries significant weight as U.S. Steel is headquartered in Pennsylvania, a crucial swing state in the upcoming election. Both Democrats and Republicans are vying for votes by promising more domestic manufacturing jobs.
Vice President Kamala Harris, the Democratic nominee, has also voiced her opposition to the deal, while former President Donald Trump, the Republican nominee, has stated that he would block the merger if he were still in office.
The news of Biden's potential decision has caused U.S. Steel's stock to fall by approximately 17%.
U.S. Steel maintains that the deal poses no national security concerns, citing Japan's status as a close ally. The company has also hosted a rally in support of the acquisition, arguing that without the deal, they would be forced to shift away from blast furnace facilities, jeopardizing thousands of jobs and negatively impacting communities across the country.
Nippon Steel announced the deal in December 2023, and U.S. Steel shareholders approved it in April of this year. The CFIUS review is expected to conclude this month, and President Biden's final decision on the matter will be closely watched.