Jeff Swensen / Getty Images
Takeaways from the Key Notes
- President Joe Biden reportedly plans to formally block the $14 billion sale of United States Steel to Japan's Nippon Steel on national security grounds.
- Bloomberg reports that Biden is expected to reject the offer once the Committee on Foreign Investment in the United States panel (CFIUS), sends the decision to the President by December 22 or 23.
- U.S. Steel has lost nearly 30% of its value this year.
According to reports, U.S. president Joe Biden plans to block the sale of United States Steel to Japan’s Nippon Steel Corp. for $14 billion on grounds of national security.
Bloomberg reports that Biden is expected to reject the offer once the Committee on Foreign Investment in the United States panel (CFIUS), sends the decision to the President by December 22 or 23.
"Any referral to the president suggests at least one member of the panel sees the deal posing a risk," the report said.
Investopedia hasn't independently confirmed Biden's plan.
Nippon Steel made its bid for US Steel last year
Biden’s administration extended the period for foreign security reviews after the Japanese firm agreed to purchase U.S. Steel. Donald Trump announced last week on Truth Social that he was going to block the acquisition, repeating his earlier opposition.
"Nippon Steel has committed to preserve U.S. Steel as a U.S. company headquartered in Pennsylvania and to contribute billions of dollars of investment to our mills and communities, securing the future of steelmaking in Pennsylvania and Indiana," U.S. Steel said in a statement to Investopedia. "No other party can do this."
David Burritt, U.S. Steel’s Chief Executive Officer David Burritt said the company will have to shut down plants in Pittsburgh and relocate its headquarters if it does not receive the $3 billion Nippon Steel promised as part of the agreement.
Nippon Steel didn't immediately respond to a request for comment.
U.S. Steel stocks are slightly higher during premarket trade on Wednesday, but have fallen almost 30% in this year.
Article sources Investopedia encourages authors to use primary source material to support their articles. White papers, data from the government, interviews with experts, and original reporting are all examples. When appropriate, we reference the original research of other publishers. Learn more about how we produce accurate and impartial content by visiting our The editorial Policy.
Bloomberg. “US Steel Drops as Biden Set to Block Nippon Steel Deal.”
Open a New Bank Account Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. These compensations may influence how listings are displayed. Investopedia doesn’t include all the offers in the market.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
