It’s a rare thing to see Joe Biden, Kamala Harris, and Donald Trump all agree on something.
But it appears the steelmaker isn’t going quietly if its acquisition is rejected.
Biden plans to announce that he will block the $14.9 billion sale of US Steel to Nippon, sources told both The Washington Post and The Financial Times.
The Financial Times reported that the president would reject the deal — which both companies agreed to in December — based on national security concerns.
In a statement sent to Business Insider, US Steel rejected the idea that selling to Nippon would pose a national security risk.
“We continue to stand by the fact that there are no national security issues associated with this transaction, as Japan is one of our most staunch allies,” US Steel wrote. “We fully expect to pursue all possible options under the law to ensure this transaction, which is best future for Pennsylvania, American steelmaking, and all of our stakeholders, closes.”
The possible acquisition of a once-mighty American brand like US Steel by foreign investors has become a flash point in the 2024 elections, with both major candidates arguing against it.
In a joint campaign stop with Biden in Pennsylvania on Monday, Harris told supporters that “US Steel should remain American-owned and American-operated,” the Associated Press reported.
Trump has also repeatedly pledged to block the sale “instantaneously” if he re-enters the White House, Politico reported.
“I will stop Japan from buying United States Steel,” Trump reiterated at a Pennsylvania rally in August, according to Reuters. “They shouldn’t be allowed to buy it.”
But just hours before the news dropped of Biden’s rejection on Wednesday, US Steel floated closing its steelmaking operation in Pittsburgh and relocating its headquarters out of Pennsylvania — a critical swing state to the 2024 election — if its sale to Nippon falls through.
US Steel warned in a statement on Wednesday that if the deal falls through, there would be major consequences.
“Without the Nippon Steel transaction, US Steel will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk, negatively impacting numerous communities across the locations where its facilities exist, and depriving the American steel industry of an opportunity to better compete on the global stage,” US Steel wrote.
US Steel CEO David Burritt put it more simply, telling The Wall Street Journal that without the acquisition, the company wouldn’t “have the money” to maintain workers’ jobs and keep its mills competitive.
The company noted in its statement that Nippon had agreed to invest roughly $2.7 billion in facilities in Pennsylvania and Indiana.
The statement also highlighted a rally on Wednesday by some Pennsylvania steelworkers, who called on state Gov. Josh Shapiro and other elected leaders to honor the deal.
Business groups like the advocacy organization the US Chamber of Commerce have also urged Biden not to block the foreign investment.
The White House did not immediately respond to a request for comment from Business Insider.
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