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Nippon Steel shares up after news of United States seeking to block peer's acquisition

Shares of Nippon Steel gotten on Thursday, surpassing the wider Nikkei index, after the news that the White House was looking to obstruct the company's $15 billion quote for its peer U.S. Steel .

Sources told Reuters on Wednesday U.S. President Joe Biden was close to obstructing Nippon Steel's takeover of U.S. Steel on national security dangers, amid growing bipartisan political opposition to the offer which the business were intending to close by the end of the year.

While losing more than 1% in the early trading in Tokyo on Thursday, Nippon Steel's shares recuperated to trade 1.5% greater by 0144 GMT, exceeding the wider Nikkei index which was flat. U.S. Steel shares shut down 17.5%.

With the takeover, Nippon Steel intended to bring its global crude steel capability to 86 million lots annually, near to its goal of 100 million, and to add 30 billion-40 billion yen ($ 209. million-$ 278 million) to its profit in the January-March quarter. of 2025.

To win assistance from the influential United Steelworkers. ( USW) union, Nippon Steel has vowed to move its U.S. headquarters to Pittsburgh, where U.S. Steel is based, to invest. over $2.7 billion in union-represented facilities and to guarantee. that the core senior management as well as a bulk of board. members at the U.S. business would be U.S. people.

Both Nippon Steel and U.S. Steel said they did not receive. any updates from the Committee on Foreign Financial Investment in the. United States (CFIUS) relating to the deal, including they did not. believe the acquisition presented national security risks.

Japan is one of our most strong allies, U.S. Steel stated. in a statement. We fully expect to pursue all possible choices. under the law to ensure this transaction ... closes.

Nippon Steel strongly thinks that the U.S. government. must appropriately handle procedures on this matter in. accordance with the law, the Japanese business said in a. different declaration.

(source: Reuters)