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Nippon Steel Reapplies For U.S. Steel Buyout Review

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Nippon Steel Corp has reapplied to the U.S. committee on foreign investment for a review of its planned acquisition of United States Steel Corp, sources familiar with the matter said Tuesday, with U.S. President Joe Biden reportedly preparing to block the deal.

The reapplication will prolong the committee's review period by 90 days, likely pushing back its decision on the deal until after the U.S. presidential election in November.

The request comes after reports earlier this month that Biden is in the final stages of blocking the $14.1 billion takeover of the iconic American firm by Japan's largest steelmaker, despite an agreement between the two firms and strong shareholder support.

The buyout plan, announced in December, has sparked stiff criticism from the powerful United Steelworkers union, which is headquartered in Pennsylvania, a key battleground state in the November election, making it a highly political issue.

Biden and Vice President Kamala Harris, the Democratic presidential nominee, have said U.S. Steel should remain in domestic hands. Former President Donald Trump, Harris' Republican rival for the White House, has also said he will block the deal if elected.

The reapplication follows Nippon Steel Vice President Takahiro Mori's visit to Washington earlier this month to hold talks with members of the U.S. committee.
 
 

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