(Bloomberg) -- Former US President Donald Trump and Pennsylvania Governor Josh Shapiro reiterated opposition to Nippon Steel Corp.’s planned purchase of United States Steel Corp., with the latter’s shares falling the most in five months.
“I will stop Japan from buying US Steel,” Trump said Monday in Pennsylvania, repeating his objections to the $14.1 billion takeover. Nippon Steel is based in Japan but is not a state-owned enterprise.
Both Trump and President Joe Biden have opposed the deal, which was announced in December and remains before federal regulators, including a review by the Committee on Foreign Investment in the US, or Cfius. The state of that review is unclear, and Biden’s administration has demurred on when, or if, it might take action.
The United Steelworkers union is also a staunch opponent of the takeover, putting political pressure on lawmakers in an election year.
Shapiro, a Democrat who Vice President Kamala Harris closely considered to be her running mate, said the deal as proposed is not fair for the steelworkers.
“I’ve been very clear that I’m not supporting any deal that the US Steel workers don’t support,” Shapiro said on the sidelines of the Democratic National Convention in Chicago on Monday. “Nippon has a lot of work to do in order to get right with the Steelworkers, if they’re ever able to.”
Cfius reviews can ultimately end up on a president’s desk for a decision, though it’s not clear whether that would happen while Biden is still in office or after Trump or Harris are inaugurated. Harris’ campaign has declined to comment on her position.
US Steel shares slumped as much as 7.6% on Monday before closing down 6%. The stock had outperformed peers in the past several weeks as investors speculated that political and labor opposition to the Nippon Steel deal may be easing.
--With assistance from Stephanie Lai.
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