- US Steel is warning the White House not to block its sale to Nippon Steel.
- The company floated massive job cuts in Pennsylvania, a key swing state.
It's a rare thing to see Joe Biden, Kamala Harris, and Donald Trump all agree on something.
But as the 2024 election races into its final sprint, the sitting president and both contenders to replace him all want to block the sale of US Steel to Japanese company Nippon Steel.
But it appears the steelmaker isn't going quietly if its acquisition is rejected.
Biden plans to announce that he will block the $14.9 billion sale of US Steel to Nippon, sources told both The Washington Post and The Financial Times.
The Financial Times reported that the president would reject the deal — which both companies agreed to in December — based on national security concerns.
The possible acquisition of a once-mighty American brand like US Steel by foreign investors has become a flash point in the 2024 elections, with both major candidates arguing against it.
In a joint campaign stop with Biden in Pennsylvania on Monday, Harris told supporters that "US Steel should remain American-owned and American-operated," the Associated Press reported.
Trump has also repeatedly pledged to block the sale "instantaneously" if he re-enters the White House, Politico reported.
"I will stop Japan from buying United States Steel," Trump reiterated at a Pennsylvania rally in August, according to Reuters. "They shouldn't be allowed to buy it."
But just hours before the news dropped of Biden's rejection on Wednesday, US Steel floated closing its steelmaking operation in Pittsburgh and relocating its headquarters out of Pennsylvania — a critical swing state to the 2024 election — if its sale to Nippon falls through.
US Steel warned in a statement on Wednesday that if the deal falls through, there would be major consequences.
"Without the Nippon Steel transaction, US Steel will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk, negatively impacting numerous communities across the locations where its facilities exist, and depriving the American steel industry of an opportunity to better compete on the global stage," US Steel wrote.
US Steel CEO David Burritt put it more simply, telling The Wall Street Journal that without the acquisition, the company wouldn't "have the money" to maintain workers' jobs and keep its mills competitive.
The company noted in its statement that Nippon had agreed to invest roughly $2.7 billion in facilities in Pennsylvania and Indiana.
The statement also highlighted a rally on Wednesday by some Pennsylvania steelworkers, who called on state Gov. Josh Shapiro and other elected leaders to honor the deal.
Business groups like the advocacy organization the US Chamber of Commerce have also urged Biden not to block the foreign investment.
The White House and US Steel did not immediately respond to requests for comment from Business Insider.