Decision on US Steel Deal May Come After Election
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United States Steel Corp. surged the most this year after the Washington Post reported that President Joe Biden wouldn’t immediately move to block Nippon Steel Corp.’s takeover bid.
While Biden remains opposed to the deal, a decision on blocking it is unlikely in the short term and may not be made until after the presidential election, the newspaper reported, citing people familiar with the matter.
U.S. Steel shares surged as much as 10%, the steepest intraday gain since Dec. 18 — the day the deal was first announced — before paring to 8.8% at 12:25 p.m. in New York.
White House spokeswoman Saloni Sharma disputes that there had been a change of plans, saying an announcement was never imminent.
🆕White House officials signal a delay in the U.S. Steel takeover decision, indicating that such a decision is unlikely in the short term and may not be made until after the 2024 presidential election, report @JStein_WaPo and @davidjlynch https://t.co/1qH0iULPwT — Washington Post PR (@WashPostPR) September 13, 2024
Biden was preparing to kill the deal once a referral from the Committee on Foreign Investment in the United States, or CFIUS, reaches his desk, people familiar with the matter said last week. As of Sept. 11, the matter remained with CFIUS.
Biden has repeatedly said U.S. Steel should remain domestically owned.
“The president told our steelworkers he has their backs, and he meant it,” Sharma said. “As we made clear last week, we have not received any recommendation from CFIUS.”
As a result, a decision by Biden “could not have been imminent,” she said.
Nippon and U.S. Steel have been making last-ditch efforts to win over workers and politicians for the $14.1 billion acquisition. This week, the two companies unveiled their correspondence with the USW to show how union leaders snubbed efforts to negotiate an agreement.
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That’s after the Pittsburgh-based company came out and warned that plants could be shut down if the sale fell through, prompting some workers to voice their support for a new owner.
But the United Steelworkers union said in a memo Sept. 12 it won’t be bullied, calling the deal “doomed” and pledging to fight any foreign ownership.
U.S. Steel and Nippon Steel pointed to the $2.7 billion of investments the deal would bring, saying that will benefit workers, local communities and national security.
