U.S. Steel shares plunge as Biden prepares to block Nippon Steel takeover

U.S. Steel shares plunge as Biden prepares to block Nippon Steel takeover
Business

United States Steel Mon Valley Works Clairton Plant and Clairton Coke Works facility in Clairton Pennsylvania, Monday, September 11, 2023.

Thomas O’Neil | Nurphoto | Getty Images

U.S. Steel shares tumbled more than 20% on Wednesday as the White House is reportedly preparing to block the company’s planned sale to Japan’s Nippon Steel.

People familiar with the matter told the Washington Post that President Joe Biden was preparing to announce that he will block the $14.9 billion deal.

Vice President Kamala Harris, the Democratic presidential nominee, said U.S. Steel “should remain American-owned and American-operated” during a campaign event in Pittsburgh Monday. Former President Donald Trump, the Republican nominee, is also opposed to the deal.

U.S. Steel CEO David Burritt told The Wall Street Journal Wednesday that the company would likely be forced to close plants and move its headquarters from Pittsburgh if the deal is blocked.

Burritt said $3 billion that Nippon has promised to invest is crucial to keeping older plants competitive and maintaining jobs.

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