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Trump has stated that he plans to prevent a Japanese company from acquiring U.S. Steel. This decision aligns with his previous statements during his campaign and adds more uncertainty to a deal that was already facing significant political resistance.
Written by Alan Rappeport and River Akira Davis
Alan Rappeport contributed to the report from Washington, while River Akira Davis provided insights from Tokyo.
During a speech on Monday night, President-elect Donald J. Trump announced his intention to prevent a Japanese company from purchasing U.S. Steel once he becomes president. He stated that he does not want the iconic American company to be owned by a foreign entity.
This aligns with what Mr. Trump had mentioned during his campaign this year, but it was his first comment on the transaction since he won the presidential election last month. Some analysts thought there might be a possibility for the deal to move forward once the political pressure decreased, but Mr. Trump’s comments indicated that it was unlikely to happen.
"I strongly oppose the acquisition of the formerly dominant U.S. Steel by a foreign company, specifically Nippon Steel from Japan," stated Mr. Trump on Truth Social. "If elected President, I will prevent this deal from going through. Buyers should be cautious!"
Earlier this year, President Biden and Vice President Kamala Harris publicly stated their opposition to Nippon’s $15 billion bid for U.S. Steel. The White House seemed ready to block the transaction in September before the election. Due to worries about political interference in the review process, the Biden administration agreed to allow Nippon to resubmit their filing to the Committee on Foreign Investment in the U.S. (CFIUS), pronounced as SIFF-ee-yuhs.
The two steel makers were given an extra three months to persuade the U.S. government that their transaction did not endanger national security, following worries from both political parties. This deadline is approaching the end of this month, which means the Biden administration will need to either give the companies more time or make a final decision on the deal.
On Monday, Mr. Trump stated that his economic strategy would guarantee the continued strength of U.S. Steel even without the expected investments from Nippon Steel.
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