Biden says U.S. Steel must remain domestically owned and operated

U.S. Steel Corp, which has agreed to be bought by Japan's Nippon Steel for $14.9 billion, must remain a domestically owned and operated American firm, President Joe Biden said on Thursday, opposing the proposed merger.

U.S. Steel Corp, which has agreed to be bought by Japan's Nippon Steel for $14.9 billion, must remain a domestically owned and operated American firm, President Joe Biden said on Thursday, opposing the proposed merger. The United States needs to "maintain strong American steel companies powered by American steel workers", Biden said.

"U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated," the U.S. President added. Shares of U.S. Steel were down 2% in morning trade on Thursday. The company was not immediately available for comment.

"There are always complications when foreign companies look to buy U.S.-based corporations, and this deal is no different," said Art Hogan, chief market strategist at B Riley Wealth in New York. "In an election year, it will be a heavy lift to get all the stakeholders comfortable with the acquisition of a U.S. manufacturing icon," Hogan added.

Reuters, citing a source, reported on Wednesday that Biden had plans to express concern over the proposed deal. The issue has the potential to overshadow an April 10 summit between Biden and Japanese Prime Minister Fumio Kishida aimed at boosting the long-standing security alliance between their countries in the face of growing Chinese strength. Nippon Steel clinched a deal to buy the 122-year-old American steelmaker for a hefty premium in December, betting that U.S. Steel would benefit from the spending and tax incentives in Biden's infrastructure bill.

However, several Democratic and Republican U.S. senators have criticized the deal, citing national security concerns or raising questions about why the two companies did not consult U.S. Steel's main union ahead of the announcement.

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