President Joe Biden is set to block Nippon Steel’s $14.9 billion acquisition of U.S. Steel, a move opposed by the Biden administration as a blow to U.S. manufacturing capacity and a national security threat. U.S. Steel executives fear thousands of union jobs and the Pittsburgh headquarters could be at risk if the deal fails, which could have political ramifications in critical swing states like Pennsylvania. U.S. Steel, once a major American company, employs about 20,000 workers and is worth around $15 billion with Nippon’s valuation. Nippon Steel opposes efforts to scupper the deal and believes their investment will strengthen U.S. Steel and the American steel industry. The deal is still being reviewed by the Committee on Foreign Investment in the United States, sparking concerns about politicizing the process. Nippon Steel is a major global steel producer, facing competition from China, and values the proposed acquisition as a strategic move for both companies.
Photo credit
www.nbcnews.com
Biden set to prevent Japanese company from acquiring U.S. Steel
