Report: Biden set to reject US Steel deal

The Washington Post reported Wednesday that President Joe Biden intends to block Nippon Steel’s proposed acquisition of US Steel, which had become a potential political sticking point in the November election. Both Vice President Kamala Harris and her opponent Donald Trump have also expressed opposition to the deal, which has been under investigation by the Committee on Foreign Investment in the United States. If the committee finds the deal could represent a national security threat, the president then has the authority to block it.

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Nippon Steel is playing its hand close to its vest and hasn’t commented on the reports of the deal being blocked. Its nearly $15 billion offer was approved by US Steel shareholders in the spring, and it would be highly unusual for a company from a close ally like Japan to be prohibited from investing in the US.

Shares in US Steel fell by roughly 18% on Wednesday’s news, trading around $29, well under the $55 per share value that Nippon Steel offered in December 2023. The company warned thousands of jobs were at risk in the key — if not downright determinative — swing state of Pennsylvania should the deal fall through. Nonetheless, Democrats are betting that this decision will help them win the state by playing up protectionist bonafides. We’ll see if the theory holds.