American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Nippon Steel’s plan to buy US Steel blocked by Biden, Washington Post reports

by admin January 4, 2025
January 4, 2025

President Joe Biden has reportedly decided to block Nippon Steel’s proposed $15 billion acquisition of US Steel, according to the Washington Post on Thursday, citing unnamed administration officials unauthorized to discuss the matter publicly.

Earlier, the Committee on Foreign Investment in the United States (CFIUS) referred the matter to the President after failing to reach a consensus.

Nippon Steel had urged Biden to consider the measures it has taken to address security concerns.

“We have made significant commitments to grow US Steel and ensure national security is safeguarded,” the company had stated.

US Steel had echoed the sentiment, emphasizing that the deal enhances both US economic and national security.

Nippon Steel now faces a hefty $565 million penalty to US Steel.

The company may pursue legal action against the US government as the merger is blocked.

The acquisition is pivotal to Nippon Steel’s expansion strategy, which aims to increase its global steel production capacity from 65 million metric tons to 85 million tons annually.

The company views the merger as a cornerstone to achieving its long-term goal of surpassing 100 million tons of production.

The outcome will have far-reaching implications for the global steel industry and US-Japan trade relations.

Meanwhile, the United Steelworkers union has voiced strong concerns over Nippon Steel’s latest proposal, which offers the US government veto power over any future reductions in US Steel’s production capacity should the merger gain approval.

Despite this concession, the union remains opposed to the merger, arguing that Nippon Steel has failed to make long-term commitments to maintaining production levels or investing in domestic capacity at integrated facilities, Reuters reported.

In a statement released on Thursday, the union criticized the proposal, stating,

“Protecting capacity only means mothballing our equipment, allowing it to rust to the point where restarting becomes impossible.”

They further described the proposal as a “Hail Mary pass destined to fail.”

Earlier reports indicated that Nippon Steel had proposed granting the US government oversight on production cuts in an attempt to win President Joe Biden’s approval for its acquisition of US Steel.

Nippon Steel, which secured a premium deal to acquire US Steel in 2023, has faced mounting opposition from the Steelworkers union and political leaders.

The union has consistently opposed the merger, citing concerns over job security and the future of domestic steel production.

Responding to the union’s criticism, US Steel defended the deal, stating,

“This transaction represents the best opportunity to ensure that US Steel, along with its employees, communities, and customers, continues to thrive well into the future.”

The post Nippon Steel’s plan to buy US Steel blocked by Biden, Washington Post reports appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
China to offer smartphone subsidies to boost consumer spending
next post
Blackrock’s IBIT is a good Bitcoin ETF: Grayscale’s BTC is better

Related Posts

Record-high gold prices keep Indian investors hooked—what’s next?

February 21, 2025

Who is Russell Vought? Project 2025 co-author confirmed...

February 7, 2025

RBI cuts repo rate: which sectors and stocks...

February 8, 2025

US-made munitions used in deadly Israeli strike on...

July 12, 2024

US Ambassador to Japan to skip Nagasaki peace...

August 8, 2024

Bodies found in Mexico confirmed as those of...

May 7, 2024

In deciding on anti-gay law, Ghana’s president is...

March 15, 2024

Violence erupts as Nigerians protest hunger across the...

August 2, 2024

Why gold prices are falling despite a Fed...

November 10, 2024

Hamas counterproposal on hostage and ceasefire deal calls...

February 8, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved