Reports have emerged that the White House is preparing to block the acquisition of US Steel by Nippon Steel, a $15 billion deal that critics say could risk thousands of jobs. President Biden still needs to receive the official recommendation from the Committee on Foreign Investment in the United States (CFIUS) before making a decision, but he has already voiced objections to the merger, backing United Steelworkers union supporters who oppose the deal. The objection holds political weight as US Steel is headquartered in the swing state of Pennsylvania, a symbol of Pittsburgh’s industrial might. Both Democratic Vice President Kamala Harris and former Republican President Donald Trump have also spoken out against the deal.
The news that Biden could stop the merger caused US Steel’s stock to fall nearly 20%. US Steel spokesperson Amanda Malkowski stated that the company sees no national security issues associated with the transaction, while Nippon Steel believes the US government should handle procedures in accordance with the law. Proponents of the deal argue that Nippon Steel is the only company capable of making an investment that would strengthen the entire steel sector.
Without the Nippon Steel deal, US Steel warns that it would have to pivot away from blast furnace facilities, putting thousands of union jobs at risk and negatively impacting communities where its facilities are located. Nippon Steel announced the deal in December 2023, and US Steel shareholders approved it in April. The situation is still developing as both companies await further updates on the review process.
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