VP Harris joins Trump, Biden in opposing US Steel-Nippon Steel merger

Published On Sep 3, 2024, 10:41 AM

Vice President Kamala Harris has publicly opposed the proposed $14.9 billion merger between U.S. Steel and Nippon Steel, aligning her stance with President Biden and former President Trump. At a Labor Day rally in Pittsburgh, Harris emphasized the importance of keeping U.S. Steel under American ownership, which comes amid concerns from the United Steelworkers union regarding job security and commitments from Nippon Steel. The Biden administration is currently conducting reviews of the merger focusing on antitrust and national security implications, which has delayed the expected closing date.

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Stock Forecasts

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Negative

Given the strong opposition from significant political figures, including the White House, and the potential for regulatory hurdles, the merger's completion is increasingly in doubt, which may lead to a negative impact on U.S. Steel's stock. Investors may want to consider shorting U.S. Steel due to the inherent uncertainties surrounding this merger.

XView X chart on TradingView

Negative

As the merger faces increased scrutiny and potential rejection, U.S. Steel's prospects may weaken, impacting its stock value negatively in the near term. Additionally, political resistance can dampen investor sentiment around the company's future. It may also lead to a decline in the stock price back towards lower trading levels.

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