Biden to Block Nippon Steel's $14.9 Billion U.S. Steel Acquisition Over National Security Concerns; Shares Drop

Sep 4, 2024, 06:35 PM

President Joe Biden is preparing to formally block Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel, citing national security concerns. The Washington Post reported that the decision follows a thorough investigation by the administration, which concluded that the transaction posed risks that could not be mitigated by the U.S. and Japanese groups. The move, which has bipartisan opposition, is expected to have significant implications for U.S.-Japan relations and has already resulted in a sharp decline in U.S. Steel's stock prices, which fell over 20% following the news. Trading of U.S. Steel shares was halted, and the decision is supported by the United Steelworkers.