Bloomberg Report Says Biden Intends to Halt U. S. Steel Deal
12/11/2024 - President Joe Biden plans to follow through on a pledge to block Nippon Steel Corp.’s acquisition of United States Steel Corporation, according to a Bloomberg report.
Citing anonymous sources, the news service said that Biden intends to halt the deal on national security concerns once he receives a referral from the Committee on Foreign Investment in the U.S.
However, such a move may not have the support of others in his administration, according to the (London) Financial Times.
The Times reported that the Pentagon, the U.S.Treasury and the State Department have determined the acquisition poses no national security threat, although one source said the determinations aren't yet final.
“There is no credible analysis in the inter-agency that supports Biden,” a former U.S. official familiar with the internal debate told the Financial Times.
Meanwhile, on Thursday, U. S. Steel said union and non-union employees, along with local officials, were rallying in support of the deal at its Clairton, Pa., coke works.
“Our employees and community members are rallying once again to show the unrelenting support for the transaction with Nippon Steel. This transaction strengthens U.S. national security, economic security, and job security, creating the best possibility for U. S. Steel to get better and bigger," said U.S. Steel president and chief executive officer David Burritt.
"This transaction with Nippon Steel is the only scenario where significant investments would occur across the unionized, integrated facilities, including in Mon Valley Works. We need to get the deal done,” he said.