Biden decides to block US Steel sale to Nippon Steel- Washington Post

U.S. President Joe Biden has decided to block the sale of U.S. Steel (NYSE:X ) to Japan’s Nippon Steel (TYO:5401 ), the Washington Post reported on Thursday evening, closing over a year of political sparring and debate over the takeover.

CBS News had reported earlier that Biden was set to make a decision on the deal by as soon as Friday, after the Committee on Foreign Investment in the United States referred the final decision on the deal to the White House in December. 

Biden had largely opposed the deal, as had several lawmakers, on the grounds that it could compromise U.S. steel supplies. The United Steelworkers Union had also opposed the deal, on the grounds that it could cut U.S. steelmaking capacity and spark layoffs. 

Biden’s reported rejection of the deal comes after reports said Nippon Steel had offered the government veto power on any decisions on domestic steel production, as a seemingly last-ditch effort to win regulatory favor for the deal.

U.S. Steel also said on Thursday that it would set up a workforce training center in Pennsylvania on the closing of the Nippon Steel takeover. 

The merger was agreed to by both companies in 2023, but has since faced repeated delays due to opposition from lawmakers and workers. 

Nippon Steel was also reportedly moving to gain approval for the deal before incoming President Donald Trump takes office later in January. Trump had vowed to block the deal.

 

Source: Investing.com