U.S. President Opposes Nippon Steel’s Bid for U.S. Steel

DOVER, Delaware (Reuters) – U.S. President Joe Biden stated on Friday that he remains opposed to Nippon Steel’s $14.9 billion bid for U.S. Steel. This comes despite his administration extending the national security review of the merger.

“I haven’t changed my mind,” Biden told reporters when asked if the extension indicated a shift in his position.

Both Nippon Steel and U.S. Steel have not responded to requests for comment. Biden’s remarks dampened hopes among deal supporters who believed the Committee on Foreign Investment in the United States (CFIUS) might approve the merger. CFIUS had previously raised concerns on Aug. 31 regarding potential national security risks linked to the steel supply chain for critical U.S. industries.

While a delay in decision-making until after the Nov. 5 presidential election instilled some optimism for merger advocates, Biden, Vice President Kamala Harris, and Republican challenger Donald Trump have all stated that U.S. Steel should remain American-owned. The company is situated in Pennsylvania, a pivotal swing state.

The United Steelworkers Union is firmly against the deal, focusing efforts on securing union voter support from both major parties.

In light of CFIUS’s concerns, Nippon Steel submitted a comprehensive 100-page response, promising to invest billions in U.S. Steel facilities that may have been closed, thereby safeguarding and potentially boosting domestic steel production. They assured that no production capacity or jobs would be moved outside of the U.S. and pledged not to interfere in U.S. Steel’s decisions regarding trade matters, including any actions against unfair trade practices under U.S. law.