Biden says U.S. Steel must stay domestically owned, a major blow to Nippon Steel
By Trevor Hunnicutt and Alexandra Alper
WASHINGTON (Reuters) -U.S. Steel Corp, which has agreed to be bought by Japan's Nippon Steel for $14.9 billion, must remain a domestically owned American firm, President Joe Biden said on Thursday — expressing explicit opposition to the deal for the first time.
«U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated,» the president said in a statement.
It was, however, not immediately clear whether Biden would use any U.S regulatory authorities to scuttle the deal. The Committee on Foreign Investment in the United States (CFIUS), a powerful panel that reviews foreign investments in U.S. companies, has the power to recommend the deal be blocked on national security grounds.
The White House said in December that the proposed acquisition deserved «serious scrutiny» given U.S. Steel's core role in steel production that is critical to national security.
Nippon Steel said in a statement on Thursday that the acquisition would deliver «clear benefits to U.S. Steel, union workers, the broader American steel industry, and American national security.»
«We are progressing through the regulatory review, including CFIUS, while trusting the rule-of-law, objectivity, and due process we expect from the U.S. Government. We are determined to see this through and complete the transaction,» it said.
Seeking to assuage concerns about potential job losses, the Japanese firm also said that there would be no layoffs and no plant closures until September 2026 under certain conditions.
Shares of U.S. Steel sank again on Thursday and have tumbled 18% over two days to $38.26 on concerns
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