President Joe Biden will soon block Japan-based Nippon Steel’s planned $14.9 billion takeover of U.S. Steel, according to multiple outlets, sending the 123-year-old American company’s stock reeling more than 20% to a low not seen since last year.
Biden will attempt to block the deal over concerns from his administration that the acquisition threatens national security, according to the Financial Times.
U.S. Steel’s stock price is down more than 22% as of 2:07 p.m. EDT, slumping to about $27.75 per share—the lowest price the company has traded at since Aug. 2023.
Nippon Steel shares are down 3.5% at $3,163 ahead of the Tokyo Stock Exchange’s opening bell, which will sound at 8 p.m. EDT.
U.S. Steel CEO David Burritt said Wednesday a failed deal could put the company’s Pittsburgh headquarters in jeopardy and risk “thousands of good-paying union jobs,” The Washington Postreported.
Nippon Steel spokesperson Tucker Elcock told Forbes the company does not believe the acquisition “creates any national security concerns,” adding the company believes the “U. S. government should appropriately handle procedures on this matter in accordance with the law.” Continue here.
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