US President Joe Biden is preparing to block US Steel acquisition by Nippon Steel of Japan.
According to CNN, the blocking of the deal would be a big setback to the $14 billion merger between US Steel and Nippon Steel.
However, the White House said that the Committee on Foreign Investment in the United States (CFIUS), which is investigating the merger, has not ‘transmitted a recommendation to the president, and that’s the next step in this process.’
The president can reject the deal if CFIUS proposes that the merger could affect national security. As per the news agency’s sources, the president could make the announcement of blocking the deal this week.
Meanwhile, US Steel and Nippon Steel stand firm to make the merger, as US Steel said, “We continue to stand by the fact that there are no national security issues associated with this transaction, as Japan is one of our most staunch allies.”
Moreover, a spokesperson for Nippon Steel stated, “Since the outset of the regulatory review process, we have been clear with the administration that we do not believe this transaction creates any national security concerns.”
US and Nippon Steel have also indicated that they are ready for the legal fight to get the deal.
