President-elect Donald Trump of the United States has promised to stop the Japanese corporation Nippon Steel from acquiring U.S. Steel.
Trump also said in a post to his social media platform Truth Social on Monday night E.T.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,”
“As President, I will block this deal from happening,” he said, adding that he will make U.S. Steel “Strong and Great Again”
Hence he also made similar statements on the 2024 campaign trails.
While he made similar statements on the 2024 campaign trail, Trump discussed the agreement for the first time since he was elected to a second term last month.
Last December, an agreement was reached for Nippon Steel, the fourth-largest steelmaker in the world, to purchase U.S. Steel. However, U.S. President Joe Biden, who has pledged that U.S. Steel will stay American-owned, and United Steelworkers, a well-known labor union, opposed the purchase.
The agreement has been under consideration by the U.S. Committee on Foreign Investment, which looks into potential national security implications of deals by foreign organizations.
Nippon Steel is the top steel manufacturer in Japan, while U.S. Steel can produce over 20 million metric tons of steel annually. The combined capacity of the two businesses might reach 86 million tons.
Requests for response from CNBC regarding Trump’s most recent statements were not immediately answered by Nippon Steel or U.S. Steel.
Previously, a Nippon Steel representative claimed that the purchase would improve U.S. national security and rebuild the American Rust Belt.
“in a way no alternative can.”
In November, Nippon Steel’s vice chairman, Takahiro Mori, told reporters that he thinks the agreement might be finalized before Trump takes office in January. David Burritt, the CEO of U.S. Steel, had similarly voiced confidence in September, arguing that the proposed transaction would improve economic and job security in addition to national security.
According to data from LSEG, U.S. Steel’s stock has dropped more than 15% so far this year, while Nippon Steel’s stock has dropped more than 4%.
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