US Steel had earlier warned that a failure to conclude a deal with Japan-based Nippon would put thousands of US union jobs at risk
The first reported the plan. Shares of US Steel closed down 17.5 per cent. Nippon Steel shares fell 1.6 per cent early on Thursday in Tokyo but later recovered to trade 0.3 per cent up.
Both Nippon Steel and US Steel said they did not receive any updates from the Committee on Foreign Investment in the United States (CFIUS) regarding the deal, adding they did not believe the acquisition posed national security risks.
“Japan is one of our most staunch allies”, US Steel said in a statement. “We fully expect to pursue all possible options under the law to ensure this transaction. closes.” “Nippon Steel strongly believes that the US government should appropriately handle procedures on this matter in accordance with the law”, the Japanese company said in a separate statement.
Nippon’s planned acquisition of the US steelmaker faces opposition from Democrats and Republicans, with Vice President and Democratic presidential candidate Kamala Harris saying on Monday she wants US Steel to remain “American owned and operated.” Her Republican rival Donald Trump has pledged to block the deal if elected.
Pennsylvania is a crucial battleground state that could sway the outcome of the 2024 presidential election and both candidates are making repeated visits there.
