Sep 18, 2024, 12:00 AM
Sep 18, 2024, 12:00 AM

Biden and Trump oppose Nippon Steel’s $14.9B U.S. Steel takeover

Provocative
Highlights
  • Joe Biden and Kamala Harris oppose Nippon Steel's $14.9 billion takeover of U.S. Steel, with Biden planning to block the deal.
  • U.S. Steel warns that blocking the sale could lead to facility shutdowns in Pennsylvania, a critical swing state in the election.
  • The review by CFIUS has granted Nippon Steel an extension to resubmit its application, pushing any decision past the election.
Story

Joe Biden and Kamala Harris have publicly opposed Nippon Steel's $14.9 billion takeover of U.S. Steel, with Biden reportedly planning to block the deal. This decision comes amid concerns over national security and the potential impact on critical supply chains. U.S. Steel has warned that blocking the sale could lead to facility shutdowns in Pennsylvania, a crucial swing state in the upcoming election against Donald Trump. The Committee on Foreign Investment in the United States (CFIUS), led by Treasury Secretary Janet Yellen, is currently reviewing the transaction and has granted Nippon Steel an extension to resubmit its application, allowing for an additional three months of evaluation. This extension pushes any final decision past the election date of November 5, raising concerns about the political implications of the review process. The White House has emphasized the importance of keeping U.S. Steel as a domestically owned entity, reflecting a broader sentiment among American leaders regarding foreign ownership of critical industries. Trump has also expressed his intention to block the deal, aligning with Biden's stance. The situation has drawn attention from major business groups in both Japan and the U.S., who have urged Yellen to resist political pressures during the review. As the election approaches, the outcome of this takeover bid could significantly influence the political landscape, particularly in battleground states like Pennsylvania, where economic stability is a key concern for voters. The ongoing review by CFIUS highlights the complexities involved in foreign investments in American companies, especially in industries deemed vital to national security. The potential consequences of this takeover extend beyond corporate interests, as they could affect employment and economic conditions in critical regions. The interplay between business interests and political considerations will be closely monitored as the election date nears, with both parties keenly aware of the stakes involved. In summary, the opposition to Nippon Steel's takeover bid reflects broader concerns about foreign ownership and its implications for national security and local economies. The decision-making process surrounding this deal will likely have lasting effects on U.S.-Japan relations and the future of American manufacturing.

Opinions

You've reached the end