President Biden wants U.S. Steel to remain domestically owned

Expressing a clear opposition to the acquisition, US President Biden said US Steel Corp. must remain a domestically owned American company.

Japan's Nippon Steel has agreed to pay $14.9 billion to acquire US Steel Corp.

According to a statement released by President Biden, US Steel has been a renowned American steel company for over a century. He emphasized the importance of the company continuing to be owned and operated domestically.

However, it was unclear right now if Biden would try to pull the agreement through any US regulatory agencies. The purchase may be banned on national security grounds at the recommendation of the influential Committee on Foreign Investment in the United States (CFIUS), which oversees foreign investments in American businesses.

In light of U.S. Steel's pivotal position in the manufacture of steel that is essential to national security, the White House declared in December that the planned acquisition merited "serious scrutiny."

In a statement released on Thursday, Nippon Steel said that the acquisition would clearly benefit union laborers, U.S. Steel, the country's larger steel sector, and national security.

Additionally, the statement stated that they were moving on with the regulatory review, which included CFIUS, while having faith in the impartiality, rule of law, and due process that we anticipate from the US government. Nippon Steeal was committed to seeing this through to the end of the deal.

The Japanese company added that there wouldn't be any layoffs or plant closures until September 2026, subject to certain requirements, in an effort to allay fears about possible job losses.

U.S. Steel's stock fell sharply once more on Thursday, falling 18% in the previous two days to $38.26 due to worries that Biden would voice his disapproval. That is much less than the $55 per share recommended deal price.