Biden voices opposition to Japanese takeover of US Steel

14th Mar 2024 15:06

(Sharecast News) - Shares in American steel producer US Steel was under pressure on Thursday after president Joe Biden said he's opposed to its $14.9bn takeover by Japan's Nippon Steel.

In prepared remarks, Biden said that is "vital" for an American steel company to be domestically owned and operated.

"It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American steel company for more than a century

The comments, which come before a state visit to Washington of Japanese premier Fumio Kishida next month, follow recent remarks from both Democratic and Republican senators who have voiced concerns about the deal.

US Steel, which was founded in 1901, would retain is Pittsburgh headquarters along with its brand name, according to the terms of the deal announced in December.

However, with it being an election year and Pennsylvania being a key swing state, Biden may be doing what he can to settle local concerns about the takeover - especially since the United Steelworkers union is also based in the state.

The stock was down 1.6% at $40.19 by 1250 ET, after hitting an earlier low of $38.86.