National Security Committee Forgoes Decision on U.S. Steel Acquisition
Published On Dec 23, 2024, 8:20 PM
The Committee on Foreign Investment in the United States (CFIUS) has recommended that President Biden block Japan’s Nippon Steel from acquiring U.S. Steel for $14 billion. The committee expressed concerns that the merger could threaten U.S. national security by potentially harming domestic steel production. Biden previously emphasized that U.S. Steel must remain American-owned, suggesting he will side with this recommendation. Blocking the deal may signify a shift away from the U.S.'s historically open approach to foreign investments, which could have longer-term implications for the economy.
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Given the likelihood of the deal being blocked, U.S. Steel is expected to face downward pressure on its share price. Additionally, this situation underlines the increasing scrutiny on foreign acquisitions in sectors deemed critical to national interests.
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