US President Joe Biden is preparing to block Nippon Steel Corp.’s $14.1 billion takeover of United States Steel Corp., according to people familiar with the matter.
The proposed deal has been under review by the Committee on Foreign Investment in the United States (CFIUS), a body tasked with evaluating the national security implications of foreign investments in American companies. As reported by Bloomberg, Biden plans to veto the takeover as soon as the CFIUS decision is delivered to his desk, which could happen as early as this week. The decision is being closely watched as it has significant implications for the steel industry and economic relations between the United States and Japan.
The news of the impending block has had immediate market repercussions; shares of US Steel plunged 24% following the initial reports.
This move would mark a significant intervention in foreign investment by the Biden administration, highlighting the growing scrutiny on national security in business deals. To read more about this evolving story, visit Bloomberg Law.