A building at the Kashima area plant of Nippon Steel East Japan Plant in Kashima, Ibaraki Prefecture, north of Tokyo on December 6, 2024.
Richard A. Brooks | AFP | Getty Images
US President Biden decides to block Nippon Steel’s $14.9 billion takeover bid United States Steel Corporation, washington post Friday’s report quoted two unnamed administration officials who were not authorized to speak about the matter.
According to the Washington Post, the White House is expected to announce Biden’s decision as soon as Friday.
The decision whether to allow the transaction to proceed is Mentioned Biden On December 23, the Committee on Foreign Investment in the United States stated after failing to reach a consensus United States Steel Corporation.
After the CFIUS assessment report reaches his desk, Biden has 15 days to approve or block the deal, prompting Nippon Steel Extend transaction period From the third or fourth quarter of 2024 to the first quarter of 2025.
CFIUS is concerned that Nippon Steel may reduce U.S. Steel’s production capacity after the acquisition, posing a risk to U.S. national security.
“Potential reductions in U.S. Steel production could lead to supply shortages and delays, impacting an industry critical to national security,” the Washington Post said. report CFIUS noted in its assessment.
To allay such concerns, Nippon Steel proposed to the U.S. government on Tuesday veto power Any reduction in the company’s steel production.
Nippon Steel has previously Offer multiple offers On deals such as keeping U.S. Steel’s headquarters in Pittsburgh, Pennsylvania, and staffing U.S. Steel’s board of directors with U.S. citizens.
The deal has the support of U.S. Steel shareholders, who April vote To make it pass.
“The overwhelming support of our shareholders is a clear indication that they recognize our compelling rationale for entering into a transaction with NSC,” said David B. Burritt, President and Chief Executive Officer of U.S. Steel.
But these factors are not enough to sway Biden, who has long been vocal in his opposition to the deal. In March, Biden released a official statement “It is critical for (U.S. Steel) to remain a domestically owned and operated U.S. Steel Company,” he said.
U.S. President-elect Trump also expressed his opposition to Nippon Steel’s acquisition proposal.
“I am completely opposed to the acquisition of the once great and powerful U.S. Steel Corporation by a foreign company, this time Japan’s Nippon Steel Corporation,” Trump said in a statement. Post on his social media platform Truth Social December 2nd.
Shares of Japan-listed Nippon Steel rose 1.2% as of 1 a.m. Eastern time.
—CNBC’s Lee Ying Shan contributed to this report.
