WASHINGTON (Reuters) -U.S. President Joe Biden plans to express
concern over Nippon Steel's proposed $14.9 billion purchase of U.S. Steel, a
person familiar with the matter said on Wednesday, pushing the U.S. company's
stock nearly 13% lower on bets the deal could face greater political
opposition.
The issue has the potential to overshadow an April 10 summit
between Biden and Japanese Prime Minister Fumio Kishida aimed at boosting the
long-standing security alliance between their countries in the face of growing
Chinese strength.
In December, Nippon Steel clinched a deal to buy the
122-year-old iconic U.S. steelmaker for a hefty premium, betting that U.S.
Steel would benefit from the spending and tax incentives in Biden's
infrastructure bill.
However, several Democratic and Republican U.S. senators have
criticized the deal, citing national security concerns or raising questions
about why the two companies did not consult U.S. Steel's main union ahead of
the announcement.
Donald Trump, Biden's rival in the November U.S presidential
election, has said he would block the acquisition of U.S. Steel if elected. The
White House said in December the deal needed to be carefully scrutinized given
U.S. Steel's core role in producing a material that is critical to national
security.
The White House declined to comment on Wednesday, but a person
familiar with the matter said Biden would issue a statement about the planned
acquisition before Kishida arrives for his state visit.
U.S. officials and lawyers have drafted the statement and the
White House has privately informed the Japanese government of Biden's decision,
according to the Financial Times, which first reported the news.
Japan's top government spokesperson Yoshimasa Hayashi declined
to comment on the report. "The Japan-U.S. alliance is stronger than ever,
and the two countries will continue to work together ... in the field of
economic security," Hayashi, chief cabinet secretary, told reporters on
Thursday, echoing recent remarks by Japanese officials.