Biden to block nearly $15B sale of US Steel to Japanese company Nippon despite CEO's warnings: report

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Japan,Joe Biden,Kamala Harris

US Steel CEO David Burritt warned the company would likely shutter steel mills if the federal government stepped in to derail the merger.

The Biden-Harris administration intends to block the proposed $14.9 billion sale of US Steel to Japanese conglomerate Nippon Steel, according to a report.

Shares of US Steel plunged by more than 20% after it was reported that the administration would scupper the merger.Toyota recalls more than 43K vehicles over defectsPro-business groups such as the US Chamber of Commerce have criticized Biden for his stance, saying that blocking the move would send a “chilling signal” to other foreign companies who are interested in investing in US companies.

The company also signaled that it would close some steel mills and potentially move its headquarters out of western Pennsylvania — a key swing state where voters will have a significant impact on the outcome of this year’s presidential election.Nippon’s planned acquisition of the US steelmaker has faced growing bipartisan opposition, with Harris saying Monday she wants US Steel to remain “American-owned and -operated.

He said that without the deal, US Steel “will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk negatively impacting numerous communities across the locations where its facilities exist.”The Japanese company said US Steel would be owned by Nippon Steel North America, its New York-based division “that has operated in the United States for over 50 years.

 

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