U.S. Steel shares fell after reports that President Joe Biden plans to block Nippon Steel's takeover of U.S. Steel.
U.S. Steel shares were reported to have ended the day down 17.5%. According to of The Washington Post.
Three people familiar with the matter spoke He told the outlet “on the condition of anonymity” that Biden plans to block a roughly $15 billion deal to sell U.S. Steel to a Japanese company.
“The acquisition is under investigation by the interagency Committee on Foreign Investment in the United States (CFIUS) for potential national security implications,” the media reported.
The acquisition is under investigation by the government agency Committee on Foreign Investment in the United States (CFIUS) for potential national security implications. White House officials declined to comment but said in a statement that CFIUS had not yet conveyed its recommendation to the president. By law, the president can only block a private transaction after receiving the committee's final report.
As Breitbart News previously reported, former President Donald Trump vowed in August to block Nippon Steel's acquisition of U.S. Steel, adding that he would invoke the Defense Production Act “to rapidly increase manufacturing capacity for essential products.”
With the help of companies like these, we will rebuild our hollowed-out defense industrial base so that America will never be without the tanks, missiles, or raw materials we need to fight and win wars.
Once I take office, I will invoke the Defense Production Act where necessary to rapidly increase manufacturing capacity for essential products and block Japan's purchases of American steel.
In December 2023, it was announced that U.S. Steel would be sold to Nippon Steel Corporation.
US Steel CEO David Barritt said: press release Not selling U.S. Steel to Nippon Steel would force the company to “significantly pivot away from its blast furnace facilities” and put “thousands of highly paid union jobs” “at risk,” Barritt said in a press release.
Without a Nippon Steel deal, U.S. Steel would have to make a major pivot away from its blast furnace facilities, putting thousands of highly paid union jobs at risk, harming many of the communities where its facilities are located, and denying the American steel industry an opportunity to become more competitive on the global stage.
According to the media, Nippon Steel recently reportedly “increased its investment plans for the new U.S. Steel by $1.3 billion.”
Nippon Steel Corp. last week increased its investment plans for the new U.S. Steel Corp. by $1.3 billion, on top of the $1.4 billion previously announced. The company said the additional funds will be used to modernize U.S. Steel's two largest facilities, the Mon Valley plant in Pennsylvania and Gary, Indiana.
Senators such as Sen. J.D. Vance (R-Ohio), Sen. John Fetterman (D-Pennsylvania), and Sen. Bob Casey (D-Pennsylvania) have expressed caution about U.S. Steel's sale to Nippon Steel.
Fetterman had previously written to Treasury Secretary Janet Yellen urging her to block the deal.
