US Blocks Nippon Steel

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Koushik Korampalli

September 8, 2024

Written by Koushik Korampalli

Est read: 1 minute

Biden will block Nippon Steel’s $14.9bn takeover of US Steel
- This was due to concerns that the acquisition would pose a national security risk
- Harris mirrored Biden’s words claiming the steelmaker should be “American owned and American operated”
- Trump also vowed to block the deal if he were elected, calling the deal “horrible”
Shares of Nippon Steel and US Steel plummeted
- US Steel fell 22% on the day of the news
- Nippon steel in the past week from a high of 3328 Yen on Monday to 3060 Low on Friday
Nippon Steel is attempting to reassure the US that there would be no security risk
- Nippon Steel has pledged to appoint a board for US Steel made of US Citizens
- Further stating that the board would consist of 3 independent directors who are US citizens
- They added that it would be owned by Nippon Steel North America, a subsidiary of the company that has operated in the US for 50 years.
- They pledged no job cuts and to move the headquarters from Houston to Pittsburgh, where US Steel is based
Nippon Steel believes that the acquisition would “revitalise the American steel rustbelt, benefit American workers, local communities, and national security”
- Nippon steel has advanced production technology that would transfer to the US
- Pompeo, former secretary of state under Trump, has been brought on by Nippon to help lobby.
- US Steel themselves claimed that thousands of jobs would be at risk if the takeover failed