President Joe Biden has reiterated his disapproval of Nippon Steel’s proposed acquisition of U.S. Steel; however, the federal government is not rushing to intervene in the deal. Despite initial speculations that President Biden may formally block the acquisition, the White House is yet to receive the required report from the Committee on Foreign Investment in the United States.
White House press secretary Karine Jean-Pierre emphasized the independence of the process, stating that the administration is awaiting the recommendation from CFIUS. The potential merger has significant political implications in Pennsylvania, a crucial state in the upcoming presidential election, given that U.S. Steel is based in Pittsburgh and is of interest to Vice President Kamala Harris and former President Donald Trump.
All three key figures, Biden, Harris, and Trump, have expressed their opposition to the deal. President Biden has close ties with the United Steelworkers union, whose members are employed by U.S. Steel and fear potential job insecurities. While opponents of the merger highlight concerns about job losses, proponents argue that merging with Nippon Steel could enhance the corporate balance sheet and prevent the closure of U.S. Steel’s older mills.
The Washington Post first reported that the acquisition would be blocked by the federal government, with a subsequent report indicating a delay in any decision regarding the merger.
