(Finance) – The US president Joe Biden ha decided to block the sale from the United States Steel to the Japanese Nippon Steel. The Washington Posts wrote it first and then rumors also came out on Bloomberg and Reuters, citing people familiar with the matter.
The agreement gives 14.1 billion dollars has faced months of strong opposition and raised questions about the future of the US industrial giant. Nippon Steel had been open to concessions on jobs, investment and local leadership.
According to data from the World Steel Association, the merger it would have created the third largest steel producer in the world after the Chinese Baowu Steel Group e ArcelorMittal based in Luxembourg.
The two companies have previously reported theintention to take legal action if Biden had formally blocked the deal.
There was uncertainty about the success of the operation already been priced by the market: US Steel shares closed Thursday at $32.60, compared to a Japanese bid of $55 a share.