The potential decision marks an unusual rebuff to a major Japanese company, given Japan's status as a key U.S. ally. It comes as the Biden administration faces increasing pressure to protect American manufacturing jobs ahead of the November presidential election.
While the White House has not confirmed the reports, White House spokeswoman Karine Jean-Pierre emphasized that the review process by the committee is ongoing. She said it "hasn't transmitted a recommendation yet to the president and that's the next step in this process."
The deal, announced in December, would create the world's third-largest steelmaker by volume. U.S. Steel and its shareholders have expressed support for the acquisition, arguing it would enhance global competitiveness.
However, the influential United Steelworkers union has strongly opposed the transaction. Vice President Kamala Harris, now the Democratic presidential nominee, echoed these concerns at a recent campaign rally in Pittsburgh. "It is vital for our nation to maintain strong American steel companies," Harris told the crowd.
Responding to the political pushback, Nippon Steel said in a statement that it is confident the acquisition would "revitalize the American steel rust belt" and "benefit American workers, local communities and national security in a way no other alternative can."
U.S. Steel CEO David Burritt warned of potential consequences if the deal falls through. "U.S. Steel will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk," he said.
The controversy surrounding the proposed acquisition highlights the delicate balance between attracting foreign investment and protecting domestic industries, particularly in politically sensitive sectors like steel production.
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