The White House is displaying a willingness to impede the acquisition of U.S. Steel by Nippon Steel as a U.S. government review of the proposed takeover by the Japanese company nears its completion. The Washington Post has reported that President Joe Biden intends to halt the deal from progressing. A White House official, speaking on condition of anonymity, did not refute the report, mentioning that Biden is still awaiting the official recommendation from the Committee on Foreign Investment in the United States. This review is expected to conclude possibly as early as this month.
Biden has already made known his disapproval of the merger, aligning with supporters in the United Steel Workers union who are against the transaction. The opposition from Biden carries significance as U.S. Steel is based in the pivotal state of Pennsylvania and signifies Pittsburgh’s industrial strength in a year marked by promises from both Republicans and Democrats to bolster domestic manufacturing employment.
Vice President Kamala Harris, the Democratic nominee, recently voiced her opposition to the proposed deal. On the other hand, former President Donald Trump, the Republican nominee, had previously indicated that he would halt the merger if he were still in office. Following the news that Biden might intervene to stop the merger, stock in U.S. Steel experienced a decline of approximately 19%.
