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Sen. Sherrod Brown (D-OH) and two other Democrat senators sent a letter urging the Biden administration to issue an executive order blocking Nippon Steel’s (OTCPK:NISTF) planned almost $15 billion purchase of US Steel (NYSE:X). US Steel fell 4.3%.
“Given the clear and present threats that Nippon Steel acquisition to American workers and a critical industry, we believe executive action to block this deal is urgent, Brown and Sen. Robert Casey (D-PA) and John Fetterman (D-PA) wrote in a letter on Monday.
The letter comes as David McCall, president of the US Steelworkers union, who has been against the deal, is scheduled to be a witness at a Congressional hearing on Wednesday titled “From High Tech to Heavy Steel: Combatting the PRC’s Strategy to Dominate Semiconductors, Shipbuilding, and Drones.”
Nippon (OTCPK:NISTF) has promised to protect jobs, plants and pensions, but USW leaders have said they are worried that the Japanese company is only making those promises in exchange for a public endorsement.
News of the letter was earlier reported by the Washington Post.
Last month, three Republican Senators urged Biden to formally prohibit or suspend the US Steel (X) sale to Nippon Steel.
The pleas follow after Biden has repeatedly said this year that US Steel (X) needs to remain an American steel company, though he has not outright called for the almost $15 billion transaction to be blocked.