The US is conducting a review of Japan’s $15 billion bid to acquire US Steel, with President Joe Biden set to decide on the fate of the deal after a national security committee recommendation is due by December 22. Despite opposition from the White House, Nippon Steel claims it will not transfer any US Steel production capacity or jobs outside the US.
The Committee for International Investment and Trade (CFIUS) has been reviewing the proposed merger since September, citing potential risks to the supply of steel needed for critical transportation, construction, and agriculture projects. In response to Bloomberg’s report that Biden plans to block the deal, shares of US Steel plummeted over 10% on Tuesday.
Nippon Steel has promised employee bonuses worth $5,000 each if the deal goes through, as well as an additional $3,160 for European employees. However, the White House remains opposed to the merger, with President Biden emphasizing the importance of domestic ownership and operation.
The two companies are poised to pursue litigation over the process if Biden decides to block the merger. This is not the first time opposition has arisen; both Biden and his predecessor Donald Trump have publicly indicated their intention to block the deal since its announcement last year.
Source: https://www.reuters.com/markets/deals/biden-plans-block-nippon-steel-purchase-us-steel-bloomberg-news-reports-2024-12-10