(Reuters) – U.S. President Joe Biden plans to formally block Nippon Steel’s proposed buyout of the company on national security grounds, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Nippon Steel agreed to acquire U.S. Steel last year but has faced resistance from an assertive labor union and the White House.
Here’s a timeline of events leading up to the deal between the two steelmakers:
DATE DEVELOPMENT
Aug. 13, U.S. Steel announces aim to explore options
2023 after receiving unsolicited bids, ranging from
the acquisition of certain production assets to
consideration for the company
Aug. 13, U.S. Steel rejects a $7.3-billion offer from
2023 Cleveland-Cliffs, leading to the start of a
formal review of its strategic options
Aug. 14, The United Steelworkers union supports
2023 Cleveland-Cliffs’ bid to acquire U.S. Steel,
saying the company is the best buyer
Aug. 14, Shares of U.S. Steel rise after privately held
2023 firm Esmark makes a $7.8-billion all-cash offer
for the company
Aug. 16, ArcelorMittal, the world’s second-largest
2023 steelmaker, considers a potential offer for U.S.
Steel, Reuters reports
Aug. 17, U.S. Senator J.D. Vance asks U.S. Steel to rule
2023 out a foreign buyer for the company
Aug. 23, Esmark withdraws its bid for U.S. Steel,
2023 respecting the position of the USW union, which
supports Cleveland-Cliffs’ offer
Aug. 29, U.S. Steel begins due-diligence after entering
2023 agreements with numerous third parties
Sept. 20, U.S. Steel and Cleveland-Cliffs clash over a
2023 confidentiality pact
Sept. 28, U.S. Steel allows Cleveland-Cliffs to
2023 participate in its sale process
Oct. 31, Major automakers oppose Cleveland-Cliffs’
2023 proposed acquisition, citing potential cost
increases and a slowdown in electric-vehicle
sales
Dec. 18, Japan’s Nippon Steel announces its plan to buy
2023 U.S. Steel in a deal valued at $14.9 billion
Dec. 19, Three U.S. Republican senators urged Treasury
2023 Secretary Janet Yellen to block the deal by
Nippon Steel, citing national security concerns.
Dec. 21, The White House said Nippon Steel’s proposed
2023 acquisition of U.S. Steel deserves “serious
scrutiny”, given its core role in U.S. steel
production that is critical to national
security.
Jan. 05, Nippon Steel was confident of completing its
2024 planned acquisition of U.S. Steel, despite
opposition from labor union and certain U.S.
senators, its president said.
Jan. 24, Nippon Steel Executive Vice President Takahiro
2024 Mori met U.S. Congress members to discuss
acquisition of U.S. Steel, as it faced strong
resistance.
Feb. 07, Nippon Steel says it was on track to finalize
2024 its acquisition of U.S. Steel by September end
as it stepped up talks with key stakeholders,
particularly labor unions.
March 04, A senior Nippon Steel executive told Reuters he
2024 was set to meet the United Steelworkers union
chief to seek support for acquiring U.S. Steel.
March 13, President Joe Biden plans to express concern
2024 over Nippon Steel’s proposed purchase of U.S.
Steel, pushing the U.S. company’s stock nearly
13% lower on bets the deal could face political
opposition.
April 10, The U.S. Department of Justice opens an in-depth
2024 antitrust investigation into Nippon Steel’s
takeover of U.S. Steel.
April 12, U.S. Steel shareholders vote to approve the
2024 acquisition, taking the merger one step closer
to completion even as political opposition rise.
April 17, President Joe Biden says at an event in
2024 Pittsburgh that the U.S. Steel should stay a
U.S.-owned company.
May 2, 2024 The U.S. Department of Justice sent a “second
request” to U.S. Steel, seeking more details and
documentary materials as part of an antitrust
review.
May 6, 2024 The European Commission approves U.S. Steel’s
$14.9 billion buyout saying the deal does not
raise competition concerns.
May 30, 2024 Both U.S. Steel and Nippon Steel say they had
received all regulatory approvals outside the
U.S. for their proposed merger
July 20, Nippon Steel hires former U.S. Secretary of
2024 State Mike Pompeo to help with its effort to
acquire U.S. Steel
Aug. 29, Nippon Steel says it plans to invest about $1.3
2024 billion more in U.S. Steel’s two mills as part
of the pending acquisition
Sept. 2, Democratic presidential candidate Kamala Harris
2024 says U.S. Steel should remain in domestic hands
Sept. 4, The White House is close to announcing President
2024 Joe Biden will block Nippon Steel’s acquisition
of U.S. Steel citing national security concerns,
two sources familiar with the situation told
Reuters
Sept. 18, U.S. decision on Nippon bid for
2024 U.S.Steel pushed back to after Nov. election,
sources told Reuters.
Sept. 24, U.S. Steel said the
2024 board of arbitration
, jointly selected by the steelmaker
and the United Steelworkers union, has ruled in
favor of Nippon Steel’s $14.9 billion buyout
deal. The United Steelworkers union (USW)
disagreed
with the decision.
Sept. 27, U.S. President Joe Biden said he had
2024 not changed his mind
about the deal despite the
extension of a national security review of the
proposed tie-up.
Nov. 18, Nippon Steel
2024 will not import steel
to the U.S. from its international
mills, the Japanese company’s Executive Vice
President Takahiro Mori said in a letter to
United Steelworkers union members.
Nov. 26, Japanese Prime Minister Shigeru
2024 Ishiba
sent a letter
to President Joe Biden asking him
to approve the deal to avoid marring recent
efforts to strengthen ties between the
countries, according to two sources familiar
with the matter.
Dec. 3, 2024 U.S. President-elect Donald Trump
said that a series of tax incentives and tariffs
will revive U.S. Steel, and reiterated his
opposition to Nippon Steel’s planned $15 billion
purchase of the company.
Dec. 10, U.S. President Biden plans to
2024 formally block the purchase on national security
grounds once the deal is referred to him later
this month, Bloomberg News reports citing people
familiar with the matter.
Sources: Reuters reports, company records
(Reporting by Abhinav Parmar, Shivansh Tiwary, Kannaki Deka, Aatreyee Dasgupta, Aishwarya Jain, Pratyush Thakur; Editing by Arun Koyyur, Devika Syamnath and Tasim Zahid)
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