News Formal

Biden to Block Nippon Steel's Acquisition of U.S. Steel

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 53 sec. here
  • 8 min. at publisher
  • 📊 Quality Score:
  • News: 45%
  • Publisher: 92%

Business News

Mergers & Acquisitions,BIDEN,NIPPON STEEL

President Joe Biden is expected to block Nippon Steel's $1.4 billion acquisition of U.S. Steel, citing national security concerns. The Committee on Foreign Investment in the United States (CFIUS) had reviewed the deal for months and referred the decision to Biden after failing to reach a consensus. While some of Biden's advisors expressed concerns about potential damage to U.S.-Japan relations, the president ultimately decided to prioritize national security interests.

, a person familiar with the matter said on Friday, dealing a probably fatal blow to the contentious merger plan.

Shares of U.S. Steel were down 7.8 per cent in pre-market trade following the reports. Japan’s stock market was closed on Friday for a public holiday.U.S. Steel directed Reuters to its Thursday statement that it hoped “Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security.”

A spokesperson for Ishiba could not be reached for comment on Friday and Japan’s trade ministry declined to comment, saying there had been no formal announcement of a decision. “Big bids are a risky idea less than 12 months from a presidential election, but big steel producers with traditional operating furnaces, such as Nippon Steel, see the U.S. as an excellent place to produce steel in the long term, despite the market depression there,” he added.

“It is difficult to fully understand the risks involved in Nippon Steel’s potential acquisition of U.S. Steel,” said a Japanese government official, who spoke on condition of anonymity, as did the other sources.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nippon Steel is committed to acquisition of U.S. Steel, aims to close in December, executive saysNippon Steel Vice Chairman Takahiro Mori said there is ‘no global strategy without the U.S.’
Source: globeandmail - 🏆 5. / 92 Read more »

Nippon Steel's U.S. Acquisition Faces Political HurdlesDespite a winning bid and promises of investment, Nippon Steel's acquisition of U.S. Steel faces strong political opposition from both outgoing and incoming U.S. presidents.
Source: globebusiness - 🏆 31. / 66 Read more »

United Steelworkers Raise Alarm Over Nippon Steel's Merger ProposalThe United Steelworkers union expressed concern over Nippon Steel's proposed merger with U.S. Steel, citing the U.S. government's potential veto power over production cuts. The union argues that the proposal lacks long-term commitments to domestic production and capacity enhancement.
Source: globebusiness - 🏆 31. / 66 Read more »