WASHINGTON: The administration of U.S. President Joe Biden may delay a decision on Nippon Steel Corp.’s planned acquisition of United States Steel Corp. until after the presidential election in November, White House officials were quoted as saying by the Washington Post on Friday.
Speculation emerged last week that Biden would announce a plan to block the deal, but concerns were growing in the United States about the economic consequences, including possible job losses.
The eastern U.S. state of Pennsylvania, where U.S. Steel is headquartered, is one of the presidential election battlegrounds. After the United Steelworkers, or USW, labor union, has made clear its opposition to the takeover plan, U.S. Vice President Kamala Harris, the Democratic presidential nominee, and her Republican rival, former President Donald Trump, have also expressed their opposition, apparently hoping to win over union members’ votes.
Currently, the Committee on Foreign Investment in the United States, or CFIUS, is screening the planned acquisition from a security perspective.
A White House spokeswoman told the Washington Post that an announcement on the plan was “never imminent” and that Biden was waiting for a recommendation from CFIUS.
According to the U.S. paper, Biden remains opposed to the proposed acquisition. However, no announcement has been made to block the deal. Investors, Pennsylvania Democratic officials and some labor union members have warned of economic harm if the acquisition does not take place.
JIJI Press