White House Moves to Block Nippon Steel's US Steel Takeover

The White House signaled it may block Nippon Steel's acquisition of US Steel, with President Biden expressing opposition to the merger. Biden supports the United Steel Workers union and aims to protect domestic jobs, especially in Pennsylvania. Stock in US Steel dropped sharply on the news.

The White House is signaling an openness to blocking the acquisition of US Steel by Nippon Steel as the government's review of the proposed takeover by the Japanese company nears its conclusion.

The Washington Post reported Wednesday that President Joe Biden plans to stop the deal from going forward. A White House official, speaking on condition of anonymity, did not deny the report and said Biden still needs to receive an official recommendation from the Committee on Foreign Investment in the United States, which could conclude its review as early as this month.

Biden has voiced objections to the merger, aligning with the United Steel Workers union, which opposes the deal. The president's stance is significant, given US Steel's headquarters in Pennsylvania, a key swing state, and the emphasis on boosting domestic manufacturing jobs during an election year. Vice President Kamala Harris also opposes the deal, and former President Donald Trump has stated he would block the merger if he were in office.

Following the news of Biden's potential intervention, US Steel's stock plummeted by approximately 19 percent.

(With inputs from agencies.)