White House Eyes Blocking Nippon Steel's Acquisition of U.S. Steel

The White House signals a potential block on Nippon Steel's acquisition of U.S. Steel. President Biden aligns with the United Steelworkers union in opposition, citing national security and economic impacts. Stock prices for U.S. Steel fell by 17%. The Committee on Foreign Investment is set to conclude its review soon.

The White House is signaling a readiness to block Nippon Steel's bid to acquire U.S. Steel, pending a government review that's nearing completion.

The Washington Post reported that President Joe Biden plans to halt the deal. A White House official, speaking anonymously, did not deny the report but mentioned that Biden is still awaiting the official recommendation from the Committee on Foreign Investment in the United States, which could arrive as soon as this month.

Biden has previously expressed his opposition to the merger, supporting the United Steelworkers union. This stance is influential as U.S. Steel's headquarters are in Pennsylvania, a key swing state, especially during an election year promising more domestic manufacturing jobs.

Vice President Kamala Harris and former President Donald Trump have also expressed opposition to the deal. The announcement led to a 17% drop in U.S. Steel's stock prices.

The CFIUS review generally addresses business issues with national security implications. U.S. Steel's spokesperson stated no national security concerns were identified in the transaction, and Nippon Steel also awaits updates from the federal government.

Nippon Steel's representative, Tucker Elcock, asserted the company's capability to strengthen the sector and urged the U.S. government to handle the matter lawfully. U.S. Steel held a rally supporting the acquisition, warning that without the deal, thousands of union jobs could be at risk and the American steel industry would lose a competitive edge globally.

(With inputs from agencies.)