US Steel Threatens Factories Closure if Nippon Takeover Fails

US Steel has threatened to close its factories in Pennsylvania if the takeover by Japanese competitor Nippon Steel is prevented. The company stated that without the acquisition, it would turn away from its factories, endangering thousands of jobs.

The proposed Nippon Steel takeover, announced in December, was met with resistance from the United Steelworkers union and Washington politicians from both parties. President Joe Biden is expected to block the acquisition, causing US Steel shares to lose nearly 20% in value.

Pennsylvania, a key state in the presidential election, is home to the company's headquarters. The dispute over US Steel's future ownership is significant as the state has become a swing state, with both Democrats and Republicans vying for its support.

Biden's move to block the deal comes amidst concerns about national security. The fate of US Steel is now uncertain, with potential plant closures and headquarters relocation looming if the acquisition is blocked.