White House Signals Opposition to U.S. Steel Acquisition by Nippon Steel

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White House Signals Opposition to U.S. Steel Acquisition by Nippon Steel

The White House is currently considering preventing the acquisition of U.S. Steel by Nippon Steel, with President Joe Biden likely to follow through on his plan following objections to the deal. Biden's stance is in alignment with the opposition voiced by supporters within the United Steelworkers union, as the acquisition is seen as potentially jeopardizing domestic manufacturing jobs, particularly in Pennsylvania where U.S. Steel is headquartered.

The Committee on Foreign Investment in the United States (CFIUS) is close to concluding its review of the proposed takeover, with Biden still awaiting the official recommendation before making a final decision. The potential blocking of the merger has led to a 17% drop in U.S. Steel's stock value, reflecting the uncertainty surrounding the deal. Despite arguments from U.S. Steel spokesperson Amanda Malkowski that the acquisition poses no national security concerns and is beneficial for Pennsylvania and American steelmaking, the opposition from political figures and concerns over job security have intensified the debate.