The White House is set to announce that President Joe Biden will block Nippon Steel’s $14.9 billion bid for the U.S. Steel citing national security concerns, two sources familiar with the situation told Reuters.
Nippon Steel agreed to acquire U.S. Steel last year, but has faced resistance since then from both an assertive labor union and the White House.
Here’s a timeline of events leading up to the deal between the two steelmakers and the growing bipartisan political opposition:
| DATE | DEVELOPMENT |
| Aug. 13, 2023 | U.S. Steel announces aim to explore options after receiving unsolicited bids, ranging from the acquisition of certain production assets to consideration for the company |
| Aug. 13, 2023 | U.S. Steel rejects a $7.3-billion offer from Cleveland-Cliffs, leading to the start of a formal review of its strategic options |
| Aug. 14, 2023 | The United Steelworkers union supports Cleveland-Cliffs’ bid to acquire U.S. Steel, saying the company is the best buyer |
| Aug. 14, 2023 | Shares of U.S. Steel rise after privately held firm Esmark makes a $7.8-billion all-cash offer for the company |
| Aug. 16, 2023 | ArcelorMittal, the world’s second-largest steelmaker, considers a potential offer for U.S. Steel, Reuters reports |
| Aug. 17, 2023 | U.S. Senator J.D. Vance asks U.S. Steel to rule out a foreign buyer for the company |
| Aug. 17, 2023 | U.S. Steel says its labor agreement with USW does not grant the union the right to veto a potential sale of the company |
| Aug. 22, 2023 | Cleveland-Cliffs demands U.S. Steel reveal all buyout offers it has received |
| Aug. 23, 2023 | Esmark withdraws its bid for U.S. Steel, respecting the position of the USW union, which supports Cleveland-Cliffs’ offer |
| Aug. 29, 2023 | U.S. Steel begins due-diligence after entering agreements with numerous third parties |
| Sept. 20, 2023 | U.S. Steel and Cleveland-Cliffs clash over a confidentiality pact |
| Sept. 21, 2023 | Canada’s Stelco Holdings considers a bid for U.S. Steel, Bloomberg news reports |
| Sept. 28, 2023 | U.S. Steel allows Cleveland-Cliffs to participate in its sale process |
| Oct. 31, 2023 | Major automakers oppose Cleveland-Cliffs’ proposed acquisition, citing potential cost increases and a slowdown in electric-vehicle sales |
| Dec. 18, 2023 | Japan’s Nippon Steel announces its plan to buy U.S. Steel in a deal valued at $14.9 billion |
| Dec. 19, 2023 | Three U.S. Republican senators urged Treasury Secretary Janet Yellen to block the deal by Nippon Steel, citing national security concerns. |
| Dec. 20, 2023 | Brian Deese, a key player in President Joe Biden’s 2024 re-election bid, says Nippon’s proposed purchase was concerning and the administration should look closely at it. |
| Dec. 21, 2023 | The White House said Nippon Steel’s proposed acquisition of U.S. Steel deserves “serious scrutiny”, given its core role in U.S. steel production that is critical to national security. |
| Dec. 22, 2023 | Japanese Industry Minister Ken Saito says U.S.-Japanese ties were “stronger than ever,” although he declined to comment directly on growing U.S. scrutiny of a proposed deal. |
| Jan. 05, 2024 | Nippon Steel was confident of completing its planned acquisition of U.S. Steel, despite opposition from labor union and certain U.S. senators, its president said. |
| Jan. 12, 2024 | Nippon Steel said President Eiji Hashimoto would become CEO and chairman from April 1, remaining at the helm as the top Japanese steelmaker aims to complete the deal |
| Jan. 24, 2024 | Nippon Steel Executive Vice President Takahiro Mori met U.S. Congress members to discuss acquisition of U.S. Steel, as it faced strong resistance. |
| Jan. 30, 2024 | Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Mizuho Financial Group plans to lend Nippon Steel a combined $16 billion for its acquisition of U.S. Steel. |
| Feb. 07, 2024 | Nippon Steel says it was on track to finalize its acquisition of U.S. Steel by September end as it stepped up talks with key stakeholders, particularly labor unions. |
| March 04, 2024 | A senior Nippon Steel executive told Reuters he was set to meet the United Steelworkers union chief to seek support for acquiring U.S. Steel. |
| March 13, 2024 | President Joe Biden plans to express concern 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, 2024 | The U.S. Department of Justice opens an in-depth antitrust investigation into Nippon Steel’s takeover of U.S. Steel. |
| April 12, 2024 | U.S. Steel shareholders vote to approve the acquisition, taking the merger one step closer to completion even as political opposition rise. |
| April 17, 2024 |
President Joe Biden says at an event in 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, 2024 | Nippon Steel hires former U.S. Secretary of State Mike Pompeo to help with its effort to acquire U.S. Steel |
| Aug. 29, 2024 | Nippon Steel says it plans to invest about $1.3 billion more in U.S. Steel’s two mills as part of the pending acquisition |
| Sept. 2, 2024 | Democratic presidential candidate Kamala Harris says U.S. Steel should remain in domestic hands |
| Sept. 4, 2024 | The White House is close to announcing President Joe Biden will block Nippon Steel’s acquisition of U.S. Steel citing national security concerns, two sources familiar with the situation told Reuters |
Sources: Reuters reports, company records
Source: Reuters.com