Shares of United States Steel (NYSE:X) fell steeply by 11.31% to $41.54 after the Financial Times reported that U.S. President Joe Biden intends to voice concerns about Nippon Steel’s proposed purchase of the company for $14.9 billion.
The report cited a person familiar with the matter who said that Biden’s statement will be made prior to Japanese Prime Minister Fumio Kushida’s visit to the U.S. on April 10. The Japanese government has reportedly been informed of the decision privately, even as U.S. officials have drafted the statement.
The deal to buy U.S. steel was finalized in December 2023 with Nippon Steel expecting the company to benefit from tax incentives in Biden’s Infrastructure Bill. At the time, the deal did attract criticism from senators across the board who cited national security as a cause of concern. They also took issue with the company’s union not being consulted.
Last week Nippon Steel reportedly filed its proposal with the Committee on Foreign Investment in the US.
By Rachael Rajan