From Investing.com: 2024-04-05 00:11:07

Japanese manufacturer Nippon Steel faces challenges in its $15 billion acquisition of U.S. Steel after concerns voiced by President Joe Biden and Trump. Shares in both companies fell, with U.S. Steel currently trading below the offered price. Regulatory reviews may delay a final decision until after the election, while Nippon Steel works to win over the United Steelworkers union.

The Committee on Foreign Investment in the United States (CFIUS) is reviewing the deal, with a government panel looking into potential national security concerns. While U.S. Steel shareholders are expected to approve the acquisition, the connection between Nippon Steel and China raises questions among U.S. officials. Delays in the approval process are likely, providing time for further discussions and negotiations.

Nippon Steel aims to address concerns about foreign ownership by emphasizing its longstanding presence in the U.S. and possibly restructuring management to include more American personnel. The deal’s fate hinges on winning over the influential United Steelworkers union, which has criticized the acquisition as lacking worker consultation. Despite the challenges, analysts remain cautiously optimistic about the deal’s prospects moving forward.



Read more at Investing.com: Analysis-Why Japan is not giving up on fraught U.S. Steel deal By Reuters