Biden blocks U.S. Steel takeover by Japan's Nippon Steel, citing national security
Posted: Jan 03, 2025
- President Biden blocked the $14.9 billion acquisition of U.S. Steel by Nippon Steel due to national security concerns
- Biden wants American companies to continue playing a central role in critical sectors
- U.S. Steel's stock dropped nearly 8% in premarket trading after the announcement
- President Joe Biden has blocked the $14.9 billion takeover of U.S. Steel by Japan's Nippon Steel citing national security concerns
- The deal would have put a large U.S. steel producer under foreign control, posing a risk to critical supply chains
- U.S. Steel's stock dropped nearly 8% in premarket trading due to the announcement
- Biden's decision reflects a bipartisan move towards protectionism in the U.S. to maintain control over key industries
- Tokyo plays a crucial role in U.S. efforts to counter China's ambitions in the Indo-Pacific region
- U.S. Steel and Nippon argued that the deal would help them stay competitive, revitalize communities, and strengthen national security but the deal was still blocked.
What do people on Reddit think?
🚨 Reddit sentiment: negative - Most comments express concern or criticism regarding the decision's economic impact and skepticism about the national security rationale, suggesting a negative sentiment. Summarized comments: - Some users compare Biden's and Trump's stance on blocking this trade, suggesting it highlights security concerns despite political differences - Concerns are raised about potential bankruptcy of US Steel and its impact on national security - Criticism about the concept of national security being used to block investment, potentially leading to mill closures and job losses - Concerns about protectionism failing in the long run, leading to negative economic consequences - If national security is a genuine concern, users suggest the government should subsidize the US steel industry to avoid economic issues - Questions about potential international retaliation, such as Tokyo refusing US sanctions - Speculation about Elon Musk's interest in the deal and humor about potential ticker changes Stock tickers discussed: $X
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