On February 16, 2024, concerns arose surrounding Nippon Steel Corp.’s proposed $14.9 billion acquisition of U.S. Steel, particularly after U.S. President Joe Biden expressed opposition to the deal. Following Biden’s decision, U.S. Steel’s stock plummeted nearly 13%, reflecting investor fears of increased political resistance. In response, Nippon Steel’s CEO, Eiji Hashimoto, reaffirmed the company’s commitment to the acquisition, stating that they would not abandon their efforts despite Biden’s blockade, which prompted the company to file lawsuits against the administration. Both Nippon Steel and U.S. Steel criticized the Biden administration for allegedly influencing the Committee on Foreign Investment in the U.S. (CFIUS) and compromising its impartiality in evaluating the merger for national security concerns. The situation is intensified by the political context, as former President Donald Trump has previously voiced intentions to halt the acquisition, labeling the deal’s failure largely a political issue. Despite their legal challenges, Nippon Steel remains steadfast in their pursuit, asserting that the acquisition would enhance U.S. Steel’s future and benefit the broader U.S. steel industry. Meanwhile, Nippon Steel’s stock declined by 1.74% amid the ongoing turbulence.
