DOVER, Delaware Sept 27 (Reuters) - U.S. President Joe
Biden said on Friday his opposition to Nippon Steel's ( NISTF )
$14.9 billion bid for U.S. Steel hadn't changed despite a
decision by his administration to extend a national security
review of the proposed tie-up.
"I haven't changed my mind," he told reporters, when asked
if the extension indicated a change of heart.
Nippon Steel ( NISTF ) and U.S. Steel did not immediately respond to
requests for comment.
The remarks threw cold water on hopes by deal supporters
that the proposed tie-up could get a green light from the
Committee on Foreign Investment in the United States, which
reviews foreign investments for national security risks.
The proposed merger appeared set to be blocked when
CFIUS alleged on Aug. 31 the transaction posed a risk to
national security by threatening the steel supply chain for
critical U.S. industries, as exclusively reported by Reuters.
But a move reported by Reuters earlier this month to
delay a decision on the politically sensitive merger until after
the Nov. 5 presidential election gave hope to proponents of the
tie-up that it might yet win approval.
Biden, as well as his Vice President and Democratic
presidential nominee Kamala Harris, and Republican challenger
Donald Trump, have said U.S. Steel should remain American-owned.
The company is headquartered in Pennsylvania, a hotly
contested swing state in the November presidential election.
The United Steelworkers Union vehemently opposes the deal and
both parties have sought to woo union voters.
In response to CFIUS's finding of an alleged national
security risk, Nippon Steel ( NISTF ) wrote a 100-page response letter
pledging to invest billions of dollars in U.S. Steel facilities
that otherwise would have been idled, "indisputably" allowing it
to "maintain and potentially increase domestic steelmaking
capacity in the United States."
The company also reaffirmed a promise not to transfer any
U.S. Steel production capacity or jobs outside the U.S. and said
would not interfere in any of U.S. Steel's decisions on trade
matters, including decisions to pursue trade measures under U.S.
law against unfair trade practices.