U.S. President Joe Biden is expected to announce his decision on Nippon Steel’s $14.9 billion acquisition of U.S. Steel as early as Friday. The president has previously expressed opposition to the deal, citing the need for a domestically owned and operated steel industry.
Biden’s top advisers have discussed the matter with him, and Secretary of State Antony Blinken has also spoken directly about the issue. If blocked, Nippon Steel may file lawsuits against the Biden administration and Cleveland-Cliffs, which lost its bid for U.S. Steel.
The proposed acquisition included a mitigation agreement that would give the US government control over changes to production capacity at U.S. Steel’s mills. However, this proposal was met with resistance from Trade Representative Katherine Tai, who had concerns about the deal’s impact on labor.
Nippon Steel extended its deadline for the acquisition to sometime in 2025 and has proposed a 10-year guarantee that it would not reduce production capacity without approval. The US government will review these proposals before making a decision.
Source: https://www.cbsnews.com/news/biden-to-announce-decision-us-steel-nippon-as-early-as-friday