Title: Biden-Harris Administration to Block Proposed $14.9 Billion US Steel Sale to Nippon Steel

In a significant move, the Biden-Harris administration has reportedly decided to block the proposed $14.9 billion sale of US Steel to Japanese conglomerate Nippon Steel. Despite warnings from US Steel CEO David Burritt about potential consequences, including the closure of steel mills and relocation of the company's headquarters from Pittsburgh, the administration remains steadfast in its decision.

The news of the administration's intention to scupper the merger has had a severe impact on US Steel's shares, which plunged by more than 20% following the report. According to The Washington Post, President Joe Biden is preparing to formally announce the blockage of Nippon Steel's acquisition of US Steel. Both President Biden and Vice President Kamala Harris, as well as former President Donald Trump, have publicly voiced their opposition to the deal.

While some lawmakers have raised concerns about national security implications, despite Japan being a longstanding US ally, pro-business groups such as the US Chamber of Commerce have criticized President Biden's stance. They argue that blocking the merger sends a "chilling signal" to foreign companies interested in investing in US companies.

Earlier on Wednesday, US Steel issued a warning that if the merger with Nippon Steel were to fall through, it would jeopardize thousands of union jobs. The company also indicated the possibility of closing certain steel mills and potentially relocating its headquarters from western Pennsylvania, a key swing state crucial to the upcoming presidential election.

The planned acquisition of US Steel by Nippon Steel has faced growing bipartisan opposition. Vice President Harris, in her bid to win over Pennsylvania voters, has emphasized her desire for US Steel to remain "American-owned and -operated." Similarly, former President Trump has pledged to block the deal if elected.

US Steel CEO David Burritt has expressed his support for the $15 billion deal, calling the fervent opposition "puzzling and confusing." Burritt stressed the importance of Nippon Steel's $3 billion investment for the survival of US Steel. Without the acquisition, Burritt warns that US Steel would have to pivot away from its blast furnace facilities, putting thousands of union jobs at risk and impacting multiple communities where its facilities are located.

In response to concerns about control, Nippon Steel has pledged to appoint a board with a majority of US citizens upon the completion of the sale. The Japanese company has emphasized that US Steel would be owned by Nippon Steel North America, its New York-based division, which has been operating in the United States for over 50 years.

While US Steel has been attempting to win over politicians and officials, Nippon Steel has sweetened its offer. The company recently announced its plan to invest over $2.7 billion into US Steel's plants in Gary, Indiana, and the Mon Valley Works near Pittsburgh, doubling its initial investment offer. Furthermore, Nippon Steel has committed to not laying off hourly employees until 2026.

US Steel, an iconic company founded in 1901 by Andrew Carnegie and J.P. Morgan, has faced financial challenges in recent years due to increasing steel costs and declining prices. However, according to a 2023 US Steel impact study, the company accounts for a substantial economic impact, sustaining over 11,000 jobs and generating $138.2 million in state and local taxes.

As the fate of the proposed US Steel-Nippon Steel merger hangs in the balance, all eyes are on the Biden-Harris administration's final decision and the potential implications for both the steel industry and the political landscape heading into the upcoming presidential election.