President Joe Biden is set to block Nippon Steel Corp.’s $14.1 billion takeover of United States Steel amid concerns about national security and potential job losses. The decision comes after a review by the Committee on Foreign Investment in the United States, and could be made as soon as this week. Biden’s plan to kill the deal has caused US Steel’s shares to plunge 24% in New York trading.
The proposed deal has generated controversy in Pennsylvania, where US Steel is based, ahead of the election. Biden has long supported keeping the iconic American company domestically owned and operated, a sentiment echoed by Vice President Kamala Harris. President Trump, Biden’s opponent in the upcoming election, had also promised to block the deal.
While proponents of Nippon Steel’s bid argue that the US should not reject a bid from an allied country like Japan, concerns about job losses and the potential relocation of US Steel’s headquarters have led to the decision to block the deal. The fate of US Steel remains uncertain if the takeover is successfully blocked, with the company warning of job losses and the need to pivot away from legacy operations.
The move to block the takeover may face legal challenges, but Biden’s decision is in line with his commitment to protecting American jobs and ensuring the national security of critical industries. The decision highlights the ongoing debate surrounding foreign acquisitions of American companies and the impact on jobs and national security.
Source
Photo credit www.dailynews.com
