US Treasury chief Yellen has no comment on US Steel-Nippon review
Adds quote, details on Biden administration's opposition to merger, from second paragraph
By David Lawder
RALEIGH, North Carolina Sept 5 (Reuters) -U.S. Treasury Secretary Janet Yellen on Thursday that the U.S. welcomes foreign direct investment and rigorously reviews deals for national security concerns, but declined to comment on reports that President Joe Biden's administration is poised to block theU.S. Steel-Nippon Steel merger.
Speaking to reporters in North Carolina, Yellen said the ultimate decision on national security decisions on foreign acquisitions rests with Biden.
On Wednesday, Reuters and other news outlets reported that the Biden administration was poised to block Nippon Steel's $14.9 billion acquisition of U.S. Steel on national security grounds.
Reuters reported that the administration told Nippon Steel 5401.T in a letter on Saturday that the merger would pose a national security risk by harming the American steel industry, citing three people familiar with the notice.
The deal faces opposition from numerous Democrats and Republicans, with Vice President and Democratic presidential candidate Kamala Harris saying on Monday she wants U.S. Steel to remain "American owned and operated." Her Republican rival Donald Trump has pledged to block the deal if elected.
Asked about the matter, Yellen said: "The United States has the environment in which we very much welcome foreign direct investment. We're seeing a huge amount of it in firms in North Carolina that have been here for a long time and coming in response to the Inflation Reduction Act."
She also said the U.S. has a "rigorous" review process for national security implications of deals.
"That's a process that is intended to advise the president, who makes the ultimate decisions on this,"she said.
Reporting by David Lawder in North Carolina; editing by Rami Ayyub and David Gregorio
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
