• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Biden preparing to block U.S. Steel sale to Japanese company
Editor's Pick

Biden preparing to block U.S. Steel sale to Japanese company

by September 6, 2024
by September 6, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

WASHINGTON — President Joe Biden is preparing to announce that he will formally block Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel, two people familiar with the matter confirmed to NBC News.

The storied American firm announced in December that it had agreed to be purchased by the Japanese-owned conglomerate, saying it was necessary for U.S. Steel’s evolution in an increasingly competitive and globalized marketplace.

But the agreement was immediately opposed by the Biden administration as not only a historic blow to U.S. manufacturing capacity, but also as a national security threat.

A water tower at the US Steel Corp. Edgar Thomson Works steel mill in Braddock, Pennsylvania, US, on April 6, 2024. Justin Merriman / Bloomberg via Getty Images

“U.S. Steel has been an iconic American company for more than a century and it should remain a totally American company,” Biden later said in April. “American-owned, American-operated by American union steelworkers, the best in the world. And that’s going to happen. I promise you.” 

A White House official said the Treasury committee charged with reviewing foreign investments into the U.S. hasn’t sent Biden a recommendation. It was not clear when such a recommendation would be made.

U.S. Steel executives have said that the deal’s failure would put the fate of thousands of union jobs — as well as its longtime Pittsburgh headquarters — in doubt. Pennsylvania is poised to be one of the most critical swing states in the fall election — meaning the potential loss of thousands of jobs there could have reverberating political repercussions.

“We want elected leaders and other key decision makers to recognize the benefits of the deal as well as the unavoidable consequences if the deal fails,” U.S. Steel CEO David Burritt said in a release. 

Once one of the largest companies in America, U.S. Steel today employs approximately 20,000 workers, down from about 340,000 at its height in 1943, according to the Pittsburgh Post-Gazette.

U.S. Steel’s market value was at about $7 billion as of Thursday morning. Its approximately $15 billion valuation by Nippon would make it worth about as much as Snap (formerly Snapchat) and Hyatt Hotels.

Shares of U.S. Steel climbed slightly Wednesday after initially declining on early reports from the Washington Post and New York Times that Biden was preparing to block the deal.

The U.S. Steel Edgar Thomson Works steel mill in Braddock, Pa. Justin Merriman / Bloomberg via Getty Images

In a statement, Nippon said that it had not received any update on the process, but that it opposed any effort to scupper the agreement.

‘Since the outset of the regulatory review process, we have been clear with the administration that we do not believe this transaction creates any national security concerns,’ it said. ‘U.S. Steel and the entire American steel industry will be on much stronger footing because of Nippon Steel’s investment in U.S. Steel — an investment that Nippon Steel is the only willing and able party to do so.’

The deal is still officially being reviewed by the Committee on Foreign Investment in the United States, an ostensibly nonpartisan arm of the U.S. Treasury that reviews national security implications of overseas entries into U.S. businesses. Its most recent high-profile case involved TikTok.

“We are very alarmed by any attempts to politicize the Committee on Foreign Investment in the United States (CFIUS) review process on the sale of the U.S. Steel to Nippon Steel Corporation, which should be conducted objectively based on fair rules and processes,’ a spokesperson for the Japan-U.S. Business Council said.

Nippon Steel also has its roots in firms more than a century old. Today, it is one of the largest producers of crude steel in the world and is worth more than $21 billion, but has been facing increasing competition from China.

Republican presidential nominee Donald Trump has previously stated he would block the deal ‘instantaneously’ if elected. In a new statement, the former president said that he would ensure U.S. Steel’s ‘facilities will remain under American ownership’ under a second Trump administration.

‘Kamala Harris is the one in the White House — if she wants to protect these American jobs she has the power to do it right now,’ a Trump campaign spokesperson said.

This post appeared first on NBC NEWS
You Might Also Like
  • First Republic bank says deposits tumbled 40% to $104.5 billion in the first quarter
  • American Express to pay $230 million to settle DOJ fraud probe, deceptive marketing claim
  • On air, ’60 Minutes’ reporter says ‘none of us is happy’ about changes that led top producer to quit
  • Netflix announces ‘broad rollout’ of password-sharing crackdown in U.S.
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Red Lobster cleared to exit Chapter 11 bankruptcy
next post
How to Spot a Golden Mining Opportunity Using SCTR Reports

You may also like

How Calvin Klein and Tommy Hilfiger got caught in Trump’s...

February 6, 2025

Here’s who might testify in Sam Bankman-Fried’s fraud trial

October 5, 2023

Capital One to acquire Discover Financial Services in $35.3 billion...

February 20, 2024

Autoworkers go on strike at plants for each of the...

September 15, 2023

Bank of America CEO says financial industry will jump into...

January 22, 2025

American Express CFO says spending picked up at year-end, thanks...

January 25, 2025

Argentine President Milei faces impeachment calls for promoting cryptocurrency that...

February 19, 2025

Electric vehicle owners face the cold truth as temperatures plummet

January 20, 2024

MGM Resorts reaches labor deal with Las Vegas unions, averts...

November 10, 2023

Semtech Expands LoRa® Portfolio with New Transceiver Featuring Long Range,...

March 15, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Oil prices hit three-month lows, head...

    May 25, 2024

    CrowdStrike moves to dismiss Delta Air...

    December 18, 2024

    More than 200 drugmakers led by...

    April 11, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here