The US government has offered a veto on any reduction in its production capacity in a proposal that marks a final effort to win President Joe Biden’s approval for its takeover of the iconic American company, according to a source familiar with the matter. US Steel shares soared, posting the biggest rise in a year.
The proposal aims to address concerns raised by the Committee on Foreign Investment in the US (Cfius), which said last week that the Japanese company’s acquisition of US Steel would result in a drop in American steel production, according to the source who asked not to be identified due to the private nature of the information. THE Washington Post had already reported the proposal previously.
US Steel shares rose as much as 14% on Tuesday in New York after the news broke, the biggest intraday jump since December 2023. Shares were trading at $34.19 at 3:59 p.m. in New York , still well below Nippon Steel’s $55 per share offer.
Nippon Steel and US Steel did not respond to requests for comment.
The White House referred to an earlier statement saying it was reviewing the Cfius report and declined to comment further.
Nippon Steel’s proposed $14.1 billion acquisition of US Steel moved closer to a veto last week after the US national security panel deadlocked in its review, leaving the final decision in Biden’s hands , who has indicated his opposition to the deal several times.
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The president is reportedly planning to veto the acquisition, although the White House has never categorically stated that he would do so. He has 15 days from the referral to announce a decision and has said several times that US Steel should remain domestically owned and operated.
President-elect Donald Trump has said he would block the acquisition, but the timing means the issue will be resolved before his inauguration.
The deal, first announced in December 2023, has become an issue in the US presidential election due to opposition from the influential United Steelworkers union. However, some local union officials, mayors and federal lawmakers have signaled support and called on Biden to allow the deal to proceed.
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