Biden administration reportedly to block US Steel sale – Washington Examiner
The Biden administration is reportedly set to block the $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel. This decision is expected to have significant labor implications and could strain U.S.-Japan relations, as Japan is a key ally of the United States. The move comes despite CEO David Burritt’s warnings that the acquisition’s failure could lead to the closure of steel mills and job relocations by U.S. Steel. Following the announcement, U.S. Steel’s stock witnessed a sharp decline, falling as much as 25%. This situation highlights the complexities surrounding cross-border mergers and the impact of governmental decisions on international business relations.
Biden administration reportedly to block US Steel sale
The Biden administration is reportedly planning to block Nippon Steel’s $14.9 billion acquisition of U.S. Steel.
Shareholders of U.S. Steel approved the sale to the Japanese-owned company this spring, garnering fierce criticism from former President Donald Trump, Vice President Kamala Harris, and President Joe Biden.
U.S. Steel CEO David Burritt said that if the deal were to fall through, the company would shut down its last steel mill in Pittsburgh and have to move its headquarters south.
The Committee on Foreign Investment in the United States is investigating the acquisition, and it has yet to give a recommendation to the president.
The U.S. Chamber of Commerce is concerned that Biden’s move to block the acquisition could have a “chilling” impact on other foreign companies seeking investments in the U.S.
In addition, Japan is an ally of the U.S., and officials are worried about how it will affect the U.S. relationship with Japan.
Nippon Steel officials said the company was attracted to make a bid for U.S. Steel because of the Biden administration’s industrial policies.
With reports that the Biden administration is seeking to block the deal, U.S. Steel’s stock price has fallen more than 22%.
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