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.

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Stock Forecasts

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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.

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