Shares of U.S. Steel Drop 11% Following Report on Biden's Concern Over Sale to Japan's Nippon Steel

By Sabela Ojea

Shares of United States Steel on Wednesday dropped after The Financial Times reported that President Joe Biden plans to express serious concern over Nippon Steel's proposed $14.9 billion acquisition of the Pittsburgh-based company.

At 1:27 p.m. ET, shares were down 11% to $41.52. The stock has surged 68% in the past 12 months.

Biden will issue a statement about the deal ahead of Japanese Prime Minister Fumio Kishida's state visit to Washington in April, The Financial Times reported.

The White House has privately informed the Japanese government of Biden's decision, to be interpreted as opposition to the takeover, The Financial Times reported.

Last December, U.S. Steel agreed to be acquired by Nippon Steel in a deal that would give the Japanese corporation a major role in U.S. steelmaking and end the independence of one of America's oldest, most storied industrial enterprises.

A takeover of U.S. Steel would make Nippon Steel one of the top suppliers to the American auto industry, and would give the Tokyo-based company access in the U.S. to specialized steel used in electric vehicle motors, along with steel used in appliances and construction materials.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

March 13, 2024 14:12 ET (18:12 GMT)

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