Trump says will 'block' Nippon Steel from taking over US Steel

WASHINGTON: US President-elect Donald Trump on Monday said he would “block” a planned takeover of US Steel by Japanese company Nippon Steel, a deal worth $14.9 billion including debts.

“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote on his Truth Social platform.

“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening.”

Embattled US Steel has argued that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it claims it may have to shutter if the sale is blocked.

Days after the US election last month, Nippon Steel said it expected to close its takeover of the company before the end of the year, while US President Joe Biden was still in office.

Biden, too, has opposed the deal, saying it was “vital” for US Steel “to remain an American steel company that is domestically owned and operated.”

The deal is being reviewed by a body helmed by Treasury Secretary Janet Yellen that audits foreign takeovers of US firms, called the Committee on Foreign Investment in the United States (CFIUS).

In September, Biden’s administration extended their review, pushing a conclusion on the politically sensitive deal until after the November 5 presidential election.

Nippon, however, was confident it would close the deal by year’s end.

A Nippon Steel earnings presentation on November 7 maintained that “the transaction is expected to close in… calendar year 2024” pending a US national security review.

“Unless the situation changes dramatically, I believe the conclusion will come by the end of the year,” during Biden’s time in office, vice chairman Takahiro Mori told reporters.

Trump will be inaugurated on January 20.

On the campaign trail, he vowed to install protectionist economic policies to help support US businesses, including threats to restart a trade war with the world’s second largest economy, China.