The White House is reportedly preparing to block the $15 billion acquisition of US Steel by Nippon Steel, a move that could risk thousands of jobs according to critics. President Biden has voiced his objections to the merger, backing the United Steelworkers union who oppose the deal. Vice President Kamala Harris and former President Donald Trump have also come out against the acquisition, with Trump stating he would block it if he were still in office. Stock in US Steel fell nearly 20% on the news of Biden potentially stopping the merger.
US Steel maintains that there are no national security issues associated with the transaction as Japan is a staunch ally. Nippon Steel believes that their investment in US Steel would strengthen the entire sector and is the best future for American steelmaking. The company has not received any updates from the federal government on the review process.
US Steel hosted a rally in support of the acquisition, stating that without the deal, they would largely pivot away from blast furnace facilities, putting jobs at risk and negatively impacting communities where their facilities are located. Nippon Steel announced the deal in December 2023 and US Steel shareholders approved it in April. The Committee on Foreign Investment in the United States is expected to provide its official recommendation to the President soon.
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