In a statement, President Biden said a committee of national security and trade experts had found that the Nippon Steel deal would leave one of "America's largest steel producers under foreign control and create risk for our national security and our critical supply chains." The veto underscores the importance of maintaining a strong, domestically owned and operated steel industry that can support national strength both at home and abroad.
Shares in US Steel dropped about 8% in premarket trading following Biden's decision. Analysts had anticipated that the president would block the $14 billion takeover based on earlier reports regarding national security concerns.
The move comes after President-elect Trump had previously expressed his opposition to the deal, stating in a Truth Social post that he was "totally against" the acquisition.
Nippon Steel would face a significant financial penalty of $565 million to US Steel if the acquisition ultimately fell through, indicating the seriousness of the transaction's failure.
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