X - US Steel Tug-Of-War Threatens To Pull It Apart
2024-03-20 10:52:00 ET
Summary
- An agreed $14 billion US Steel acquisition by Japan’s Nippon Steel slammed into political opposition, with Joe Biden declaring it vital the centenarian company remains domestically owned and operated.
- US Steel became vulnerable to a takeover largely because it has spent heavily on lower-emission electric arc alternatives, hurting returns in the meantime.
- US Steel maintains it expects to complete the transaction this year, but such confidence isn’t shared widely enough to avoid taking other options seriously.
By Breakingviews
Efforts to "save" United States Steel ( X ) may rip it apart. An agreed $14 billion acquisition by Japan's Nippon Steel ([[NPSCY]], [[NISTF]]) slammed into political opposition, with U.S. President Joe Biden declaring it "vital" the centenarian company remains "domestically owned and operated." A sale to hostile suitor Cleveland-Cliffs ( CLF ) or a standalone U.S. Steel seems equally intolerable....
US Steel Tug-Of-War Threatens To Pull It Apart