Biden expected to address concerns on US Steel-Nippon deal: FT
US Steel (X) shares are falling — continuing to slide in extended-hours trading — on reports from the Financial Times that President Biden will voice his concerns on the steel producers acquisition by Japanese company Nippon Steel (NPSCY, 5401.T). Biden is expected to comment on the matter before Japanese Prime Minister Fumio Kishida's US visit in April.
Yahoo Finance Live highlights disagreements between Nippon and the United Steelworkers union, all these events coming to a head during Biden's reelection year.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Let's take a look today at US Steel, letter X dropping in today's trade, and you can see a big drop. The reason, a report that President Biden does plan to express what's being described here as serious concern over its proposed takeover by Nippon Steel. Apparently, Biden is going to issue this statement, Julie, before the Prime Minister from Japan arrives for a visit on April 10.
This is all per the Financial Times citing sources. Company did say it's going to hold a special meeting in connection with this proposed takeover on April 12. So a few different moving parts here but you can see the reaction in today's trade.
- Yeah. the United Steelworkers have been very unhappy with this deal. And they have been meeting with Nippon Steel to try and get this over the line. In fact back on March 7, there was an in-person meeting between the head of the United Steelworkers as well as the Executive Vice President of Nippon Steel, and they didn't come to an agreement.
- Right.
- So this seems to be part of what's going on here, that perhaps the president, who we know has close union ties, is taking that into account. But the stock reaction today was very clear when this story came out.
- Well, it's so Interesting, because it is politics. I mean, Pennsylvania is a critical swing state in this election, and Biden now finds himself in between the Union and voters on the one hand, and then Japan on the other. He also doesn't want to alienate, obviously, a very critical ally.
