US Steel Stock Sinks as Biden Blocks Nippon Steel Takeover | Global News Avenue

U.S. Steel Stocks (XShares of the iconic U.S. company fell 8% in premarket trading on Friday as President Joe Biden blocked the $14.1 billion sale of the iconic U.S. company to Japan’s Nippon Steel Corp.

The White House announced the decision on Friday, citing the rejection as a perceived threat to national security.

“As the Administration-wide Committee of National Security and Trade Experts determined, this acquisition would place one of America’s largest steel producers under foreign control and pose a threat to our national security and critical supplies,” Biden said. chain creates risks.”

Before the transaction was officially blocked, new york times The report said that the blockage of the deal could damage the relationship between the United States and Japan, a close ally and big investor of the United States.

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

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

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

Neither U.S. Steel nor Nippon Steel Corp. returned Investment Encyclopedia Request to comment.

Updated – January. February 3, 2025: This article has been updated to include President Biden’s statement blocking the deal.