US Steel Shares Plummet Amid Merger Concerns

Investing.com — US Steel plunged on Wednesday after the Washington Post reported, citing unnamed sources, that President Joe Biden is set to block the U.S. steel maker’s $14.9B merger with Japan’s Nippon Steel amid national security concerns.

Market Reaction

United States Steel (NYSE:X) Corp (BVMF:USSX34) closed 17% lower on Wednesday.

A White House official declined to comment to the Washington Post’s request for comment but stated that the Committee on Foreign Investment in the United States had not yet transmitted its recommendation to the president.

Nippon Steel’s Position

Nippon Steel argued that the merger, which would create the third-largest steel company in the world, would help the U.S. steel maker better compete with its Chinese rivals.

Nippon Steel attempted to address concerns about its takeover of United States Steel, stating on Wednesday that it would keep the U.S. company headquartered in Pittsburgh, Pennsylvania, and promised a board of directors consisting mainly of U.S. citizens.