Title: President Biden Opposes Nippon Steel’s Acquisition of U.S. Steel Corp, Citing National Security
In a move that underscores the administration’s commitment to domestic industry, President Joe Biden is set to voice his opposition to the proposed $14.9 billion acquisition of U.S. Steel Corp (X.N) by Japan’s Nippon Steel (5401.T). In a statement to be released on Thursday, the President will emphasize the importance of keeping U.S. Steel an American-owned and operated entity.
“The United States needs to maintain strong American steel companies powered by American steel workers,” Biden’s statement, which Reuters had access to, will assert. He will further stress the significance of U.S. Steel’s status as an iconic American company for over a century, underscoring its vital role in remaining domestically owned and operated.
News of the President’s stance sent U.S. Steel shares down by 4.9% in premarket trading on Thursday. This development comes on the heels of a Reuters report citing a source that Biden planned to express concerns over the proposed merger. The issue could cast a shadow on the upcoming April 10 summit between Biden and Japanese Prime Minister Fumio Kishida, which is intended to strengthen the security alliance between the two nations amid China’s growing influence.
Nippon Steel had sealed the deal in December, hoping to capitalize on U.S. Steel’s potential growth from spending and tax incentives in Biden’s infrastructure bill. However, bipartisan criticism from U.S. senators has emerged, with some pointing to national security implications and others questioning why the companies did not engage with U.S. Steel’s main union before making the announcement.
President Biden’s forthcoming statement reflects a broader concern about maintaining the competitive edge and integrity of American steel companies in an era where proposed mergers are closely scrutinized for their impact on national security and domestic industry stability.
