14 Mar Biden poised to intervene in proposed takeover of US Steel by Japanese rival
Overview
- Joe Biden plans to intervene in Nippon Steel’s proposed purchase of US Steel,
- a move that could threaten the deal and anger Japan,
Said & Unsaid
- Biden will issue a statement expressing serious concern
- over the Japanese group’s proposed $14.9bn acquisition
- of the Pennsylvania-headquartered steelmaker
- before Prime Minister Fumio Kishida arrives for a state visit in Washington on April 10
- of the Pennsylvania-headquartered steelmaker
- over the Japanese group’s proposed $14.9bn acquisition
- Biden’s expression of concern will be interpreted as opposition to the takeover
- and marks the culmination of months of White House debate
- on how to respond to a deal that has sparked a bipartisan backlash in Washington
- against the sale of a US manufacturing icon to a foreign group.
- on how to respond to a deal that has sparked a bipartisan backlash in Washington
- and marks the culmination of months of White House debate
- Although US law gives the administration the power to block
- certain foreign acquisitions on national security grounds,
- Biden will not say outright that the deal should be blocked,
- certain foreign acquisitions on national security grounds,
Political Concern
- Pennsylvania is a crucial electoral swing state in this year’s presidential election
- between Biden and Donald Trump
Context
- Nippon Steel announced the controversial acquisition in December,
- leading Biden to pick a side between
- a powerful union and its voters,
- and a vital American ally.
- leading Biden to pick a side between
- The timing of Biden’s statement is significant because last week
- Nippon Steel filed its proposal with the Committee on Foreign Investment in the US,
- which vets inbound investments for national security risks
- Nippon Steel filed its proposal with the Committee on Foreign Investment in the US,
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