US Steel Slips Pre-Market As Nippon Deal Awaits Biden’s Final Decision: Retail Keeps The Faith

Shares of U.S. Steel Corp. slipped nearly 1% in premarket trading on Tuesday after the Committee on Foreign Investment in the United States (CFIUS) referred Nippon Steel’s $14.1 billion acquisition proposal to President Biden, but retail sentiment remained strong.

The move follows CFIUS’s inability to reach a consensus on whether the deal poses national security risks, placing the final decision squarely in Biden’s hands.

“We received the Cfius evaluation and the president will review it,” the White House spokesperson said in a statement. 

Biden has 15 days to deliver his verdict, with White House officials signaling his intent to block the deal, according to the Washington Post and Financial Times.  

President-elect Trump has also been vocally opposed to the Nippon Steel acquisition of U.S. Steel. He explicitly stated on Truth Social that he is "completely against" a foreign entity purchasing U.S. Steel, specifically calling out Nippon Steel of Japan.

Biden’s decision, if against the deal, would mark a win for United Steelworkers. The union's president, David McCall, has staunchly opposed the acquisition, citing risks to jobs and the broader industry.

Nippon Steel has hinted at a legal battle if the deal is rejected. The company criticized the review process, alleging “political interference” and factual inaccuracies in CFIUS’s evaluation.

It maintains confidence that the transaction would strengthen U.S. Steel and benefit the American economy if judged fairly.

The acquisition’s collapse could strain U.S.-Japan relations, with analysts warning it might undermine confidence in investment processes perceived as politicized.

United States Steel Corp. Sentiment and Message Volume on Dec 24 as of 8:35 a.m. ET | Source: Stocktwits

Despite anticipation that the deal could get blocked, retail sentiment on Stocktwits improved to ‘extremely bullish’ from ‘neutral’ a day ago, while chatter increased to ‘high’ from ‘normal’ levels as users debated how Biden would decide.

The high-stakes transaction has faced scrutiny since its announcement over a year ago, with Biden opposing the plan on grounds of preserving U.S. steel production and national security. 

CFIUS raised concerns about potential reductions in domestic steel output, labeling it a “national security risk.” 

Nippon Steel confirmed that Cfius had referred the decision to the U.S. president after failing to reach a consensus.

The company urged Biden to “reflect on the great lengths that we have gone to address any national security concerns,” in a statement.

With the uncertainty weighing on the stock, it has dipped over 34% so far this year. 

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