Mr. Biden says US Steel should maintain domestic ownership, a big blow to Nippon Steel

2.Unemployment concerns

3.US Steel shares fell again on Thursday, falling 18% over two days to $38.26 due to concerns that Mr Biden would express opposition.

1.President Joe Biden voiced his first clear opposition to the deal on Thursday, saying that the $14.9 billion acquisition must remain a domestically owned US company.

The president stated in a statement that “US Steel has been a steel company that has symbolized the United States for over a century, and it is extremely important that it continues to be an American steel company owned and operated domestically.”

However, it is currently unclear whether Mr. Biden will use US regulators to annul the agreement. The Committee on Foreign Investment in the United States (CFIUS), which is a powerful committee that examines foreign investment in American companies,It has the authority to recommend blocking agreements on national security grounds.

Nippon Steel said in a statement on Thursday that the acquisition would “clearly benefit US Steel, trade unionists, the broader US steel industry, and US national security.” ”We are proceeding with regulatory reviews, including CFIUS, while trusting the rule of law, objectivity, and proper procedures expected from the US government. We are determined to see this through to the end and complete the deal.”It was said.

2.In an attempt to allay concerns about potential job losses, the Japanese company also stated that it would not cut personnel or close factories until 2026/9 under certain conditions.

3.US Steel shares fell again on Thursday, falling 18% over two days to $38.26 due to concerns that Mr Biden would express opposition. This is significantly lower than the proposed transaction price of $55 per share. There has been no comment from the company.

3.Apart from this, Cleveland Cliffs (CLF.N) opens in a new tab Lorenco Gonçalves (CEO) said Thursday that if the contract with Nippon Steel breaks down,He stated that there is a possibility that they will consider re-bidding against US Steel will be less than $30 per share.