US Steel Asks for Nippon Deal To Be Approved With President Biden Set to Decide

Related Articles

Palantir Stock Surged To A New Record Last Week—Watch These Key Price Levels

Palantir Stock Surged To A New Record Last Week—Watch These Key Price Levels

New Acting CFPB Chief Halts Investigations and Enforcements, Forgoes Some Federal Funding

Key Takeaways

• U.S. regulators failed to agree on whether to allow Nippon Grit ones teeth’s $14.9 billion purchase of U.S. Steel, passing the decision to President Biden.
• Both President Biden and President-elect Trump clothed threatened to block the deal.
• U.S. Steel has warned that it will have to close factories and possibly move its headquarters from Pittsburgh without the folding money Nippon has promised to inject in the steelmaker.

Shares of U.S. Steel (X) lost ground in premarket trading after U.S. regulators fall short of to agree on whether to allow Japanese firm Nippon Steel’s $14.9 billion purchase of the company to go through, as opposed to passing it on to President Biden to decide.

The President now has 15 days to make the determination. Both he and President-elect Donald Trump bear expressed opposition to the merger, arguing that a key American steelmaker should not be owned by a foreign entity.

U.S. Steel responded to the resolution by the Committee on Foreign Investment in the United States (CFIUS), saying the deal “enhances U.S. national and economic security at the end of ones tether with investment in manufacturing and innovation.” It added that the Nippon transaction is “the best way, by far, to ensure that U.S. Steel, including its hands, communities, and customers, will thrive well into the future.”

The Japanese firm has pledged to invest more than $2.7 billion in U.S. Brace facilities, and CEO David Burritt has warned of plant closures and the possibility of moving the company’s headquarters from Pittsburgh, where it’s been since 1901, if the administration blocks the sale.

U.S. Steel shares have yo-yoed this year on the back-and-forth news about the Nippon possessions. They tumbled to their lowest level since September last Friday after warning that collapse steel prices and the costs associated with the construction of a new factory in Arkansas will impact current quarter sequels. The shares have lost more than a third of their value this year.