US plans to block Nippon Steel takeover of US Steel - US media
Published On Sep 4, 2024, 4:22 PM
President Biden is poised to block a $15 billion deal allowing Japanese company Nippon Steel to acquire U.S. Steel, citing concerns over national security and potential job losses. This potential block has raised alarms regarding the future of steel manufacturing jobs in Pennsylvania and could deter foreign investment in the U.S. Shares of U.S. Steel have already dropped nearly 20% following these reports, despite the company's ongoing support for the merger. The CFIUS is reviewing the deal closely, as the political landscape becomes increasingly charged in the lead-up to the presidential elections.
Stock Forecasts
X
Negative
The blocking of the acquisition is anticipated to negatively affect U.S. Steel's stock as it raises doubts about the company's future growth prospects and may lead to job losses in the sector. Additionally, the heightened regulatory scrutiny could dampen investor sentiment towards U.S. Steel and similar companies in the steel industry.
Related News
Arbitration board gives green light to US Steel-Nippon Steel merger over union's objections
Sep 25, 2024, 4:51 PM
Nippon Steel's bid to buy U.S. Steel was given the green light by an arbitration board tasked with reviewing the United Steelworkers union's complaints with the transaction.
Harris and Trump are offering radically different visions of manufacturing — and how the government can help in 2025
Sep 25, 2024, 7:37 AM
Kamala Harris and Donald Trump are using dueling speeches this week to position themselves as the candidate of manufacturing, but both are promising to help in nearly opposite ways.
U.S. Steel C.E.O. Says Nippon Deal Will Strengthen National Security
Sep 17, 2024, 3:53 PM
David Burritt expressed confidence that the sale of the American manufacturer to a Japanese owner would close “on its merits” despite bipartisan backlash.