US Steel Stock Sinks as Biden Reportedly Set to Block Nippon Steel Takeover | Global News Avenue

U.S. Steel Stocks (X) shares fell 9% in premarket trading on Friday on reports that President Joe Biden decided to block the iconic American company’s $14.1 billion sale to Japan’s Nippon Steel Corp.

The White House plans to announce the decision on Friday, Bloomberg The companies “have said they plan to take legal action if Biden formally blocks the deal,” the report said.

Biden rejected the deal on the grounds that it posed a threat to national security, new york times According to reports, this may damage relations with Japan, a close ally of the United States and a major investor in Japan.

U.S. regulators fail to agree on whether to allow the Japanese company’s takeover last monthdelivering the decision to President Biden.

U.S. Steel’s future in doubt if Biden vetoes deal

The Japanese company has pledged to invest more than $2.7 billion in U.S. steel facilities and CEO David Burry warn The plant closures and the U.S. company’s headquarters could move from Pittsburgh if the government blocks the sale.

Rejection of the deal would cast a pall over U.S. Steel’s future. had it before rejected Tender offer from Cleveland-Cliffs (CLF) and subsequently acquired Canadian steel company Stelco.

U.S. Steel and Nippon Steel did not immediately return Investment Encyclopedia Request to comment.