What’s next for Nippon Steel and US Steel after Biden blocks US$15b merger over national security fears?
The path forward is unclear. The companies could sue the US government, another buyer could swoop in for US Steel, or Republicans who favour the deal could urge Trump to find a way to approve it.The proposed deal has not yet been terminated by the companies even after Biden blocked the deal. Nippon Steel argued it made numerous concessions, including offering to move its headquarters to Pittsburgh, to meet the demands of CFIUS, the Committee on Foreign Investment in the United States, the panel that decides on whether foreign purchases of US companies should go forward. — Reuters pic
The United Steelworkers union, which opposed the deal, has called the company’s warnings baseless, saying yesterday that it is clear that US Steel’s recent financial performance shows it “can easily remain a strong and resilient company.” “I am totally against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan,” he wrote on his Truth Social platform last month. “As president, I will block this deal from happening. Buyer Beware!!!”