KEY TAKEAWAYS: 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. According to Bloomberg, Biden will reject the bid once the Committee on Foreign Investment in the United States (CFIUS) panel sends its decision to the president by Dec. 22 or Dec. 23. U.S. Steel shares have lost almost 30% this year.
Nippon Steel made its bid for US Steel last year. The Japanese company had agreed to buy U.S. Steel last year, but received pushback from the Biden administration, which extended the foreign security review period. President-elect Donald Trump said in a post on his Truth Social platform last week that he would block the deal, reiterating his previous opposition to the takeover. U.S. Steel said in a statement that Nippon Steel has committed to preserve U. S. Steel as a U.S. company headquartered in Pennsylvania and contribute billions of dollars of investment. U.S. Steel Chief Executive Officer (CEO) David Burritt has said that without the $3 billion promised by Nippon Steel if the deal passes, the company would have to close plants and move its headquarters out of Pittsburgh. Nippon Steel didn’t immediately respond to a request for comment. U.S. Steel shares are edging higher in premarket trading Wednesday but down almost 30% this year.
