U.S. Steel's stock rises after report Biden won't block takeover by Nippon anytime soon

By Victor Reklaitis

Such a move now appears unlikely in the short term and may not come until after the November election

U.S. Steel Corp.'s stock (X) jumped 4% on Wednesday afternoon following a Washington Post report that President Joe Biden will not move imminently to block the takeover of the iconic American company by Japan's Nippon Steel (JP:5401).

Two weeks ago, U.S. Steel shares plunged as Biden was reportedly preparing to announce that he would formally prevent the proposed $14.9 billion acquisition.

White House officials now have signaled that such a move isn't likely in the short term and may not come until after the November election, according to the Washington Post report, which cited unnamed sources. The shift follows increasing political and economic concerns over a block of the buyout. The president remains opposed to the deal, the report added.

Biden announced in March that he was against the takeover on national-security grounds, and Democratic presidential nominee Kamala Harris said she was against it earlier this month. In January, Republican presidential nominee Donald Trump promised to block the deal.

Proponents of the deal have criticized the efforts to prevent it on national-security grounds, saying that Japan is one of America's most important and reliable allies.

-Victor Reklaitis

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09-13-24 1356ET

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