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Trump has stated that he intends to prevent a Japanese company from acquiring U.S. Steel. This decision echoes his previous statements during his campaign and adds more obstacles to a deal that was already facing strong political resistance.
Written by Alan Rappeport and River Akira Davis
Alan Rappeport provided information from Washington, while River Akira Davis contributed from Tokyo.
President-elect Donald J. Trump announced on Monday evening that he plans to prevent a Japanese company from purchasing U.S. Steel after he becomes president. He stated that he is opposed to allowing a foreign company to own such a significant American business.
This was consistent with the views Mr. Trump shared during his campaign this year, but it was his first comment on the deal since winning the presidential election last month. Some experts thought there might be a possibility for the deal to proceed once the political pressure eased, but Mr. Trump’s statements indicated that it was unlikely to be approved.
Mr. Trump expressed his strong opposition to the foreign acquisition of U.S. Steel by Nippon Steel of Japan on Truth Social. He stated that if he becomes President, he will prevent this deal from going through and warned buyers to be cautious.
Earlier this year, President Biden and Vice President Kamala Harris expressed their disapproval of Nippon’s $15 billion bid for U.S. Steel. The White House was considering blocking the transaction before the election in September. Due to concerns about politicization of the review process, the Biden administration agreed to Nippon’s request to resubmit their filing to the Committee on Foreign Investment in the U.S. (CFIUS) for review.
The two steel companies were given an extra three months to prove to the U.S. government that their transaction was not a national security threat. Concerns were raised by members of both political parties. The deadline for their decision is approaching, and the Biden administration will need to either extend the deadline again or make a final ruling on the deal.
On Monday, Mr. Trump stated that his economic strategy would guarantee the strength of U.S. Steel without the need for the investments from Nippon Steel that were previously promised.
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