Official announcement from the U.S. government or President Biden

Biden to Block Nippon Steel's $14.1 Billion U.S. Steel Purchase Amid National Security and Labor Concerns

Dec 10, 2024, 09:53 PM

President Joe Biden plans to block Nippon Steel's $14.1 billion acquisition of United States Steel on national security grounds, according to multiple reports including Bloomberg. The move is expected to be formalized later this month after a review by the Committee on Foreign Investment in the United States (CFIUS), which will refer the decision to the President. The head of a powerful labor union opposing the sale expressed concerns about Nippon Steel's commitment to ensuring the long-term success and survival of U.S. Steel. Following the reports, U.S. Steel's stock price fell sharply, declining up to 18% and triggering trading halts due to volatility. Both companies have indicated they may pursue litigation if the deal is blocked. Nippon Steel has defended its bid, stating that their partnership is the best path forward for U.S. Steel's future.