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MONEYWATCH U.S. Steel shares plummet amid questions over the fate of its merger with Nippon Steel
CBS News ^ | September 4, 2024 / 2:48 PM EDT | Kate Gibson

Posted on 09/04/2024 12:08:44 PM PDT by Miami Rebel

U.S. Steel shares plunged on Wednesday as Wall Street questioned whether its $14.1 billion deal with Japan's Nippon Steel is at risk of derailing.

Shares of U.S. Steel plunged as much as 25% in afternoon trading after the Washington Post reported President Joe Biden is preparing to formally block the proposed acquisition. As of 2:35 p.m., shares of U.S. Steel were down $7.12, or 20%, to $28.48.

The White House downplayed the Washington Post report, which cited three people familiar with the president's plans. In a statement, it cited a process of review by the Committee on Foreign Investments in the United States, or CFIUS, a panel chaired by the Treasury Secretary.

"CFIUS hasn't transmitted a recommendation to the President, and that's the next step in this process," a White House official stated.


TOPICS: Miscellaneous
KEYWORDS: merger; pennsylvania; ussteel
I think that the deal still makes sense. Japan isn't a strategic adversary and Nippon has announced they'd spend billions in expanding production in Pennsylvania.

I bought @ $28 and sold October $25 puts for $1.3. The stock's cheap even without a deal.

1 posted on 09/04/2024 12:08:44 PM PDT by Miami Rebel
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To: Miami Rebel

Tough luck that this is an election year. Neither candidate can voice support for this deal.


2 posted on 09/04/2024 12:18:24 PM PDT by maro (MAGA!)
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To: Miami Rebel

“Joe Biden” will block the deal? It would be nice to be able to say who made that decision, but I’m sure it wasn’t Joe. So I wonder if Kamala could articulate the reasoning behind the decision. No, I don’t wonder. She could not string together 3 sentences about it without repeating herself. Someone needs to step up and explain to us rubes.


3 posted on 09/04/2024 12:20:46 PM PDT by Sicvee (Sicvee)
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To: Sicvee

It’s the usual anti-foreigner argument used across the political spectrum. I remember when the Japanese bought Pebble Beach and Rockefeller Center and people cried bloody murder as if the Japanese would crate and ship them back to the Land of the Rising Sun.

Nippon would provide welcome capital to Steel. As it is, the only other possible bidder, Cleveland Cliffs, has pissed away billions in share buybacks and in the acquisition of the Canadian Stelco, so they now have too much debt to make a run.


4 posted on 09/04/2024 12:28:45 PM PDT by Miami Rebel (pro-)
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To: maro

The White House downplayed the Washington Post report, which cited three people familiar with the president’s plans. In a statement, it cited a process of review by the Committee on Foreign Investments in the United States, or CFIUS, a panel chaired by the Treasury Secretary.

xxxxxxxxxxxxxxxxx

right.

big election right around the corner. us steel & nippon gotta get their money right with the pols’ cut before they can get the blessing of yellen


5 posted on 09/04/2024 12:43:21 PM PDT by thinden (buckle up ....)
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To: Miami Rebel

Will Harris even allow steel production in the Us? It’s icky and testosterone dirty men work in steel plants. And the carbon footprint. Think of the children.


6 posted on 09/04/2024 2:33:22 PM PDT by Organic Panic (Democrats. Memories as short as Joe Biden's eyes)
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