Larry Summers Backs Nippon's Acquisition Of US Steel Corp Amid Team Biden's Opposition: 'Protectionist Pandering With No Genuine National Security Rationale'
Portfolio Pulse from Benzinga Neuro
Larry Summers, former Treasury Secretary, supports the acquisition of United States Steel Corp. (NYSE:X) by Japan's Nippon Steel Corp. (OTCPK: NISTF), despite the Biden administration's national security concerns. The $14.1 billion deal is under US review, potentially until 2025. Summers argues there's no national security risk and sees the deal as beneficial, potentially lowering steel prices and infusing capital into the US steel industry. The White House has expressed concerns over national security and supply chain impacts. Both companies are cooperating with the CFIUS review process.
January 20, 2024 | 3:29 am
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NEUTRAL IMPACT
Nippon Steel Corp.'s proposed acquisition of U.S. Steel Corp. is backed by Larry Summers but faces opposition from the Biden administration due to national security concerns.
Nippon Steel Corp.'s stock may experience neutral short-term impact due to the mixed signals from the endorsement by Larry Summers and the opposition from the Biden administration. The outcome of the CFIUS review process adds to the uncertainty, making it difficult to predict the deal's completion and its impact on the stock.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
U.S. Steel Corp. is involved in a potential acquisition by Nippon Steel, which is supported by Larry Summers but faces scrutiny from the Biden administration for national security reasons. The deal could infuse capital and lower steel prices.
While the endorsement by Larry Summers could be seen as a positive, the ongoing regulatory scrutiny and national security concerns from the Biden administration create uncertainty. This could lead to a neutral short-term impact on U.S. Steel Corp's stock as investors weigh the potential benefits against the risks of regulatory challenges.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 100