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U.S. President Biden blocks merger of Nippon Steel ( NISTF ), U.S.

Steel

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Biden, Trump had both previously voiced opposition to deal

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US Steel has said deal failure would risk union jobs

(Adds details)

Jan 3 (Reuters) - U.S. President Joe Biden has decided

to officially block Nippon Steel's ( NISTF ) proposed purchase of U.S.

Steel, a person familiar with the decision said on Friday.

Biden, President-elect Donald Trump and a

politically-influential labour union had voiced opposition to

Nippon Steel's ( NISTF ) acquisition of U.S. Steel, which

helped build the Empire State Building and arm allied forces in

World War Two.

World Steel Association data showed the estimated $15

billion merger deal would have created the world's third-largest

steelmaker after China's Baowu Steel Group and Luxembourg-based

ArcelorMittal.

U.S. Steel's shares had tumbled in recent weeks following a

Bloomberg report that Biden planned to kill the merger.

Here is a look at the latest developments:

APPROVAL

The Committee on Foreign Investment in the United States, a

government panel that assesses inbound foreign investment for

national security risk, had been reviewing the transaction for

months.

In late August, it notified the two companies of associated

risk, Reuters reported, and days later sources said Biden was

poised to block the deal.

But the panel opted to extend deliberations, pushing the

decision back to after the Nov. 5 presidential election, Reuters

reported in September.

Nippon Steel ( NISTF ) had repeatedly said it was confident of closing

the deal by the end of 2024.

TRUMP'S STANCE

Trump had repeatedly vowed to block the sale. "Buyer

Beware!", he wrote on his Truth Social platform last month.

OUTCOME OF A BLOCK

U.S. Steel has previously said the deal's failure would put

thousands of U.S. union jobs at risk and that it might be forced

to close some steel mills. The United Steelworkers union, which

opposes the deal, has called those assertions baseless threats

and intimidation.

Nippon Steel ( NISTF ) previously said it was considering all possible

measures, including legal action, to close a deal it sees as key

to its future growth.