U.S. Government Stops U.S. Steel sale To Nippon Steel

President Joe Biden has decided to formally halt Nippon Steel’s $14.09 billion acquisition of U.S. Steel, a person with knowledge of the ruling, stated on Friday, delivering a potentially devastating blow to the controversial merger proposal.

 

The option of whether to approve or block the deal had previously been referred to Biden by the Committee on Foreign Investment in the United States (CFIUS), who will be leaving office in January. 19.

Even though some senior advisers opposed the deal because they thought it might harm the United States. The source, who spoke to Reuters, stressed the political ramifications of a deal but did not provide further details on the decision’s rationale.

The White House and a Nippon Steel representative declined to comment on the reports.   “Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances national and economic security,” U.S Steel told Reuters in a statement earlier Thursday.

“Nippon secured the purchase of U.S Steel by paying a substantial premium in a December 2023 auction, but politicians and the influential United Steelworkers Union (USW) opposed the deal.

Biden has stated his desire for U. S. Steel to be owned and operated domestically. President-elect Donald Trump has pledged to thwart the deal once he assumes office in January

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Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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