The President of the United States, Joe Bidenwill block the purchase of Steel in the United States (US Steel) by Nippon Steel after the Foreign Investment Committee informed the Japanese company that the transaction raised national security concerns that could not be mitigated by either party.
The Asian steel company, however, assured that it had not received any update on the matter from the said body, while recalling that it had always defended that the transaction did not jeopardize the national security from the United States.
“Nippon Steel firmly believes that the U.S. government must properly handle the proceedings in this matter in accordance with the law,” the company said in a statement.
For her part, White House spokeswoman Karine Jean-Pierre said the analysis was “surprisingly independent,” even though no recommendations have yet been made to the president.
Anonymous sources collected by Bloomberg They suggest that Biden will veto the acquisition as soon as the committee formally submits its opinion, which could happen this week.
US Steel before Biden
This company starred in one of the Jordanian movies Bag still facing criticism after hitting intraday declines of 25%. However, its shares were down 17% at the close of trading. Wall Streeta significant percentage. The reason for this problem is the uncertainty resulting from the possible blockade by the government of USA from the sale of this company to Japanese steelits equivalent in Japan.
In concrete terms, the Japanese metallurgical company is in the process of buying the American company, but not without problems. The Democratic candidate, Kamala Harrisin the next elections of USA said that US Steel “must remain in American hands” and the Republican Party Donald Trump has a similar opinion.
Expert sources in the sector explain to OKDIARIO that the carbon steelThe company’s main asset, is used to produce “cars, tanks, arm either satellites“, which is considered by policy makers as a “strategic sector”.
This is why the North American authorities want to prevent the company from falling into foreign hands, as they consider it a great asset within their country. national economy.
Given this uncertainty as to the eventuality blockade Following the deal, US Steel warned that it did not have enough money to cover its current expenses. As a result, it warned that it would likely be forced to close plants or even move its headquarters. This would have serious consequences for job American.
Industry sources insist to this newspaper that carbon steel production, unlike stainless steel, is heavily dependent on rotation, given that its margins They are smaller. So the weakness of the market weighs heavily on US Steel’s accounts.
For American politicians, this is not a good enough reason to sell the company to Japan. Given all the production that depends on these materials, both Kamala Harris and Donald Trump are in favor of purchase veto.
