05:36 PM EST, 12/10/2024 (MT Newswires) -- (Adds US comment in fifth and sixth paragraphs.)

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.

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.

US Steel told MT Newswires late Tuesday in a statement that it continues to believe the transaction should be approved on its merits, asserting its benefits were "overwhelmingly clear."

The company also said the transaction has attracted strong support from customers, investors, and employees as well as affected communities. "We will continue to advocate for them and adhere to the rule of law," it added.

Messages from MT Newswires seeking comment from Nippon Steel and the Steelworkers union were not immediately returned.

(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.)