US Steel Merger Review Delayed Until After Election #

The national security review of US Steel’s merger with its Japanese competitor is now expected to be completed after the November 5 election. This decision aims to avoid the political pressures of the election cycle, as all major political parties have expressed opposition to the deal.

US Steel’s stock price saw a significant increase following indications that the President would not immediately move to block the merger. The company has warned that without the merger, it may be forced to lay off workers and close mills.

The review process has become increasingly politicized, with various political figures and business groups weighing in on the matter. Several business organizations have cautioned against allowing politics to interfere with the national security review process.

Key political figures, including the Vice President and prominent Rust Belt Democrats, have voiced their opposition to the deal. The former President and his vice presidential nominee have also expressed disapproval of the potential sale to a Japanese company.

US Steel initiated a sale process in 2023 after receiving an unsolicited takeover offer. The resulting $14.9 billion deal with Japan’s largest steelmaker emerged from this process.

The White House has stated it will await the recommendation of the review committee before making a decision. The administration has emphasized the importance of US Steel remaining an American-owned and operated company.

The Governor of Pennsylvania has been in communication with various stakeholders regarding the deal and has cautioned against allowing political rhetoric to overshadow the interests of workers in Western Pennsylvania.

As the review process continues, the outcome of this significant merger remains uncertain, with potential implications for the US steel industry and international business relations.