Biden and Harris delay decision on Nippon Steel"s $14.1B U.S. acquisition
- The Committee on Foreign Investment has delayed its recommendation on Nippon Steel's acquisition of U.S. Steel amid mixed stakeholder opinions.
- Biden and Harris are in favor of keeping U.S. Steel under American ownership, while concerns about national security have been raised regarding the deal.
- The potential blocking of the acquisition has sparked international concerns, particularly from Japanese officials about the implications for U.S.-Japan relations.
President Joe Biden and Vice President Kamala Harris are considering blocking a significant acquisition of United States Steel Corporation by Japan's Nippon Steel, valued at $14.1 billion. The Committee on Foreign Investment has delayed its recommendation on the deal, reflecting mixed opinions from union members and stakeholders. While Biden and Harris advocate for U.S. ownership of the steel company, former President Donald Trump opposes the acquisition entirely. Concerns have been raised regarding national security and the stability of critical supply chains, with United Steel Workers President Dave McCall emphasizing the potential risks associated with the merger. Conversely, some union representatives argue that the deal could secure jobs in the Mon Valley for decades. The Biden administration has flagged the acquisition as a potential national security threat, although the U.S. State and Defense Departments have not reached a consensus on this issue. The situation has drawn international attention, with Japanese political figures expressing unease over the potential U.S. decision to block the acquisition, fearing it could damage trust between allies. As the situation unfolds, U.S. Steel's stock has seen fluctuations, reflecting investor sentiment amid the uncertainty surrounding the deal. The outcome of this acquisition could have significant implications for the U.S. steel industry and international relations, particularly in the context of economic security and job preservation.