Joe Biden close to blocking Nippon Steel deal to buy US Steel, insiders say
US Steel warns that a failure of the US$14.9 billion acquisition will put thousands of American union jobs at risk.
The Biden administration is close to announcing it will block Nippon Steel’s acquisition of US Steel, two sources familiar with the situation said on Wednesday, amid growing bipartisan political opposition to the US$14.9 billion deal.
A decision could be announced as soon as later this week, sources said. The move could potentially impact the United States’ relationship with Japan, a close ally.
The panel that is reviewing the proposed merger for national security reasons has not sent its formal recommendation to the president, White House spokeswoman Karine Jean-Pierre said.
White House spokesman John Kirby declined to comment on Biden’s plans but reiterated the president’s view “that American steel companies ought to be American owned”.
The Washington Post first reported the thinking of the administration of US President Joe Biden. Shares of US Steel closed down 17.5 per cent. Nippon declined comment and US Steel did not immediately comment on the administration’s plans.
The US Treasury Department, which is overseeing the national security approval process for the deal, declined to comment.
