President Joe Biden's Planned Intervention Signals Heightened Scrutiny Over Nippon Steel's United Steel Acquisition Bid

President Joe Biden is reportedly poised to express significant apprehension regarding Nippon Steel Corporation’s NPSCY proposed acquisition of U.S. Steel Corporation X, potentially jeopardizing the deal and straining relations with Japan. 

Sources familiar with the matter reveal that Biden will release a statement addressing the Japanese conglomerate’s $14.9 billion bid for the Pennsylvania-based steel giant ahead of Prime Minister Fumio Kishida’s scheduled visit to Washington on April 18. 

The anticipated expression of concern, drafted by U.S. officials and legal experts, the Financial Times highlights, signifies a culmination of internal deliberations at the White House concerning the bipartisan opposition sparked by the proposed acquisition.

The impending statement from Biden holds particular significance in the context of the presidential race, with Pennsylvania emerging as a pivotal swing state. 

Both Biden and his opponent, Donald Trump, have courted union support in the state, with Trump already criticizing Nippon Steel’s deal as “horrible.” 

Opposition to the acquisition has also been voiced by the United Steelworkers union, further complicating Biden’s stance as he seeks to balance domestic interests and diplomatic relations.

Despite the absence of a direct call for blocking the deal in Biden’s statement, citing insiders, the FT report suggests that the president’s expression of concern will echo sentiments previously voiced by White House economic adviser Lael Brainard, emphasizing the necessity for rigorous scrutiny. 

The timing of Biden’s planned intervention coincides with Nippon Steel’s recent submission of its proposal to the Committee on Foreign Investment in the U.S. (Cfius), a move indicative of escalating regulatory scrutiny.

President Joe Biden’s economic advisors emphasized a commitment to safeguarding union jobs and domestic manufacturing in the U.S. steel industry, suggesting that Nippon Steel may need to enhance its support for organized labor to finalize the deal.

Price Action: X shares are down 12.10% at $41.15 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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