Chicago – March 13, 2024
According to a person familiar with the situation who spoke to Reuters, U.S. President Joe Biden is expected to voice concerns regarding Nippon Steel’s (5401.T), opens new tab proposed $14.9 billion acquisition of U.S. Steel (X.N), opens new tab. This has caused the stock of the U.S. company to drop 12% on speculation that the deal may encounter stronger political resistance.
Nippon Steel secured a contract to purchase the 122-year-old, venerable steelmaker in December at a steep premium, placing a wager that U.S. Steel would profit from the tax breaks and spending opportunities included in Biden’s infrastructure package.
Nonetheless, a number of lawmakers from both the Democratic and Republican parties have expressed disapproval of the agreement, citing worries about national security or questioning the two firms’ failure to notify U.S. Steel’s principal union in advance of the announcement.
According to Nippon Steel, the deal will benefit all parties involved. Outside of usual business hours, it was not immediately accessible for comment.
According to the individual, Biden will announce Nippon’s proposed acquisition before Japanese Prime Minister Fumio Kishida visits Washington on April 10 for a state visit.
American lawyers and officials wrote the statement, and the White House has notified the Japanese government in private of Biden’s choice.
