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Biden Plans to Block Takeover Bid of U.S. Steel by Japan’s Nippon
New York times ^ | 3rd January 2025 | Alan Rappeport

Posted on 01/03/2025 4:04:32 AM PST by Cronos

President Biden has decided to block the $14 billion takeover of U.S. Steel by Nippon Steel of Japan in an announcement expected as soon as Friday based on grounds that the sale poses a threat to national security, according to people familiar with the matter.

The decision would be an extraordinary use of executive power, particularly for a president who is just weeks from leaving office. It is also a departure from America’s long-established culture of open investment, one that could have wide-ranging implications for the U.S. economy.

Mr. Biden’s move to stop the transaction could cause foreign investors to rethink the wisdom of acquiring American firms in sensitive industries that are based in politically important states. It could also roil relations with Japan, a close ally of the United States and one of America’s largest sources of foreign investment.

The president’s decision to block the deal came after a federal committee reviewing the transaction opted to not make a formal recommendation about whether the takeover should be allowed to proceed, according to letters sent to the companies and the White House last month.

...But that decision could face challenges in court. Nippon had indicated that it was prepared to take legal action if the deal was blocked.

Nippon sent a letter to CFIUS last month that accused the White House of “impermissible influence” in the process. Nippon said the concerns raised by CFIUS were “littered with factual inaccuracies and omissions, misleading and incomplete statements, conjecture and hypotheticals that have no basis in fact and are plainly illogical.”

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Foreign Affairs; Japan; US: Pennsylvania
KEYWORDS: iron; japan; steel; tariff; tariffs
What's up, Brandon?
1 posted on 01/03/2025 4:04:32 AM PST by Cronos
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To: Cronos
The US owns companies in every country of the world.

Put strings in the deal..

2 posted on 01/03/2025 4:09:25 AM PST by Sacajaweau
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To: Cronos

” the concerns raised by CFIUS were “littered with factual inaccuracies and omissions, misleading and incomplete statements, conjecture and hypotheticals that have no basis in fact and are plainly illogical.”

Yep, the commies will do that. Even when they are not senile, they do this.

Not sure how the president gets to do things like this in a “free” country. He must be establishing precedent for the next commie/fascist we “elect”.


3 posted on 01/03/2025 4:20:48 AM PST by Sarcazmo (Dr. Sarcazmo esq.)
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To: Cronos

only 17 days left....time to get busy I guess


4 posted on 01/03/2025 4:23:09 AM PST by xp38
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To: Cronos

“My Uncle Ambrose was eaten by cabbinals fightin’ those shhirfhhjnghgrhmn …the Japs. So nowayin HELL amah gonna let ‘em by steel from us.” —Go Brandon


5 posted on 01/03/2025 4:32:11 AM PST by BradyLS (DO NOT FEED THE BEARS!)
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To: xp38

he wants it for china


6 posted on 01/03/2025 4:44:35 AM PST by ronnie raygun
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To: xp38

But he will not do anything substantial to China as he accepted tens of millions of dollars from them.


7 posted on 01/03/2025 5:13:45 AM PST by Machavelli (True God)
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To: Cronos

Preempting Trump


8 posted on 01/03/2025 5:17:09 AM PST by bert ( (KE. NP. +12) Where is ZORRO when California so desperately needs him?)
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To: Cronos

It’s my understanding that Nippon would move in and modernize and revitalize U.S. Steel. It sounds like a great thing to me. Maybe union members don’t want to be more efficient and productive.


9 posted on 01/03/2025 5:43:34 AM PST by FoxInSocks ("Hope is not a course of action." — M. O'Neal, USMC)
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To: Cronos
Didn't Trump come out against the sale of US Steel??
10 posted on 01/03/2025 5:44:49 AM PST by glaseatr (Father of a Marine, Uncle of SGT Adam Estep. A Co. 2/5 Cav. KIA Thurs April 29, 2004 Baghdad Iraq)
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To: FoxInSocks

Or more simply, it’s just another example of, “If Biden is for it, it must be bad for America and I’m against it.”


11 posted on 01/03/2025 5:44:52 AM PST by FoxInSocks ("Hope is not a course of action." — M. O'Neal, USMC)
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To: Cronos

Trump is bigger than U.S. Steel.


12 posted on 01/03/2025 5:52:46 AM PST by period end of story (Unvaxxed for my protection.)
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To: Cronos

I guess Nippon Steel did not offer the big guy enough for the deal to go through.


13 posted on 01/03/2025 6:16:17 AM PST by Erik Latranyi (This is the end of the Republic....because we could not keep it.)
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To: Cronos
The decision would be an extraordinary use of executive power, particularly for a president who is just weeks from leaving office. It is also a departure from America’s long-established culture of open investment, one that could have wide-ranging implications for the U.S. economy.

Mr. Biden’s move to stop the transaction could cause foreign investors to rethink the wisdom of acquiring American firms in sensitive industries that are based in politically important states. It could also roil relations with Japan, a close ally of the United States and one of America’s largest sources of foreign investment.

Nippon sent a letter to CFIUS last month that accused the White House of “impermissible influence” in the process. Nippon said the concerns raised by CFIUS were “littered with factual inaccuracies and omissions, misleading and incomplete statements, conjecture and hypotheticals that have no basis in fact and are plainly illogical.”

My first thought was that the the NY Times is putting a surprisingly negative spin on this. Then I remembered that they don't care about Biden anymore.

I wonder how they will spin it if Trump reverses Biden. The above points will suddenly disappear.

14 posted on 01/03/2025 6:51:55 AM PST by lasereye
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To: Machavelli

My suspicions are that Joe’s got some Chii-nah entity waiting in the wings to buy it out instead* ... he’s that crooked, even if he is in his dotage.

*(plus — 10% for “the Big Guy”)


15 posted on 01/03/2025 7:21:24 AM PST by twyn1 (“An evil man will burn his own country to the ground to rule over the ashes”I thin)
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To: Cronos

Took the bribe it’s all he deals in?.

One can make a lot of money with 50 years in D.C..

Only has to say one thing where’s the money.


16 posted on 01/03/2025 7:49:00 AM PST by Vaduz
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To: FoxInSocks
It's my understanding that Nippon would move in and modernize and revitalize U.S. Steel. It sounds like a great thing to me.

Ditto that. I don't give a damn if the CEO of the company lives in Pittsburgh or Tokyo. As long as the plants and employees are in the US I'm OK.

And think of this. 50 years ago, US Steel was the largest company in the world. Today I don't even think they are a Fortune 500 company. Their 3 plants in the Mon Valley are old and tired, and if not modernized soon, the entire company will go belly up. Nissan has promised to modernize them. We should accept the offer.

17 posted on 01/03/2025 8:22:56 AM PST by Ditto
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To: Cronos

HE WANTS A BIGGER PAYOFF.


18 posted on 01/03/2025 8:24:27 AM PST by ridesthemiles (not giving up on TRUMP---EVER)
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To: FoxInSocks
Maybe union members don’t want to be more efficient and productive.

Just like the longshoremen...

19 posted on 01/03/2025 8:26:45 AM PST by kiryandil (No one in AZ that voted for Trump voted for Gallego )
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