The Biden administration has warned Nippon Steel that its $14.9 billion acquisition of U.S. Steel could jeopardize national security, according to sources familiar with the matter. The Committee on Foreign Investment in the United States (CFIUS) expressed concerns that the deal would harm American steel production and reduce U.S. Steel’s efforts to pursue trade remedies. The companies were given until Wednesday to respond.
The deal faces bipartisan opposition, with Vice President Kamala Harris and Donald Trump both opposing the foreign acquisition. In their defense, Nippon Steel and U.S. Steel argued that blocking the transaction could lead to job losses, idling of blast furnace facilities, and a weakened U.S. steel supply. Both companies have vowed to explore all legal options to proceed with the deal.
Nippon Steel shares rose 0.8% on Thursday, while U.S. Steel shares dropped by 17.5% following the news.
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