04:54 PM EST, 12/10/2024 (MT Newswires) -- US Steel (X) slumped Tuesday, closing almost 10% lower, following reports that President Joe Biden plans to formally block the proposed $14.1 billion acquisition of the company by Japan's Nippon Steel, Bloomberg reported Tuesday, citing people familiar with the matter.

It's not exactly clear when Biden will announce his decision, the sources said. The Committee on Foreign Investment in the United States, a federal panel that oversees transactions involving US companies thought to be important to US strategic interests, has been expected to meet and forward its recommendation about the deal to Biden by Dec. 23, they said.

The Committee on Foreign Investment in the United States, which oversees transactions involving US companies deemed vital to national security, is expected to forward its recommendation to Biden by Dec. 23.

Biden would then have up to 15 days to announce his decision, but the exact timing remains unclear, according to the news outlet.

While it's unusual for CFIUS to block a deal involving an ally like Japan, Biden and Vice President Kamala Harris have expressed opposition to the merger, a position also supported by the United Steelworkers union. Nippon Steel and US Steel are reportedly preparing to pursue legal action if the transaction is denied, the sources said.

Nippon Steel and US Steel did not immediately respond to a message from MT Newswires Tuesday seeking comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)