US President Joe Biden has said he opposes the sale of the company US Steel to the Japanese firm Nippon Steel. However, he has not formally blocked the takeover bid. On Friday, a White House official said the decision on whether to approve the deal is not “imminent.”
Press Secretary Karine Jean-Pierre said Biden has yet to receive any recommendation from the Committee on Foreign Investment, which is reviewing the proposal. However, she added that he has not changed his position.
Jean-Pierre said: “It is vital. It is vital for US Steel to remain American, a steel company that is domestically and certainly owned and operated.”
The two companies agreed last December to a takeover valued at about 15 billion dollars. However, the committee reviewing the deal has expressed concern it could hurt the supply of steel that the US needs for critical industries like transportation and infrastructure.
The Washington Post earlier reported that the decision might possibly be delayed until after the presidential election in November. It quotes sources saying White House officials have seen a slowdown in deliberations due to “mounting concerns over the political and economic consequences of nixing the deal.”
A spokesperson for Nippon Steel said the CEOs of both companies sent Biden a letter earlier this week. The contents have not been disclosed.
Top executives from Nippon Steel met with senior US officials on Wednesday in an attempt to salvage the deal. And both companies have revealed records of communications they had with the United Steelworkers union to show that they have tried to create the “best possible environment” for good-faith negotiations.