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US alerted Nippon its United States Steel bid positions a nationwide security threat, sources say

The Biden administration told Nippon Steel in a letter on Saturday its $14.9. billion acquisition of U.S. Steel would pose a nationwide. security threat by hurting the American steel industry, 3. people stated, adding to proof the U.S. is poised to block it.

The deal faces opposition from numerous Democrats and. Republicans, with Vice President and Democratic presidential. candidate Kamala Harris saying on Monday she wants U.S. Steel to. remain American owned and operated. Her Republican rival. Donald Trump has pledged to obstruct the offer if elected.

In the letter, which has actually not been previously reported, the. Committee on Foreign Financial Investment in the United States (CFIUS). said the deal would harm American steel production and. reduce the likelihood that U.S. Steel would continue to. aggressively look for trade solutions, individuals who were familiar. with the matter said, including that the business were offered until. Wednesday to react.

The committee has determined dangers to the national security. of the United States arising as a result of the deal,. the letter said, according to among the sources.

In their written response, excerpts of which were shared. with Reuters, the companies echoed issues exposed openly by. U.S. Steel on Wednesday. Rejection of this transaction will. cause the idling of U.S. Steel's blast heating system centers; ... likely expense countless jobs; and eventually damage the quality. and resiliency of steel supply to U.S. industries.

The U.S., they included, was acting in this matter not on the. basis of the realities, the law, or the United States national. security interests, however on the basis of politics and the cynical. exploitation thereof by third parties.

The White Home declined to comment. The Treasury. Department, which leads CFIUS, did not react to a request for. comment.

Spokespeople for Nippon Steel and U.S. Steel decreased to. talk about the letter but referred Reuters to prior statements. arguing that the offer does not produce any national security. issues and would strengthen the U.S. steel market.

We completely expect to pursue all possible alternatives under the. law to guarantee this deal, which is the very best future for. Pennsylvania, American steelmaking, and all of our stakeholders,. closes, the representative for U.S. Steel added.

(source: Reuters)