Shares of US Steel (NYSE:X) fell 7.9% in pre-market trading on Friday after President Biden announced his decision to block the $14.9 billion acquisition by Nippon Steel. The move underscores the administration’s commitment to protecting American industry. The proposed deal would have seen Nippon Steel, a Japanese company, take over the iconic American steelmaker. This decision comes amidst concerns over national security and the preservation of domestic steel production capabilities. The block has immediate financial implications for US Steel, with its stock price taking a significant hit. Meanwhile, Nippon Steel’s shares also experienced a downturn, reflecting investor reactions to the unexpected regulatory intervention. The situation highlights the complexities of international mergers in sensitive industries and the potential for government intervention to alter market dynamics.
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