The government's growing concern over a potential US Steel takeover

Japan's largest steelmaker, Nippon Steel, is attempting to buy the company

A general view of the U.S. Steel Clairton Coke Works facility in Clairton, Pennsylvania.
A general view of the U.S. Steel Clairton Coke Works facility in Clairton, Pennsylvania
(Image credit: Justin Merriman / Bloomberg via Getty Images)

One of the largest steel producers in the world, Japan's Nippon Steel, is attempting to purchase the American-based U.S. Steel, but is facing pushback from the U.S. government due to concerns over the potential takeover's effect on the economy. U.S. Steel was once the preeminent steel conglomerate in the world, but is no longer in the top 10 of steel production companies anymore. As a result, the company has been looking to foreign lifelines, but regulators and politicians in the United States are expressing concern.

The deal, first announced last year, would see Nippon acquire U.S. Steel for $14.9 billion, if approved by regulatory agencies. However, there have been concerns raised that the purchase would create not only the aforementioned economic problems but also open the United States to additional national security risks. Despite this, both companies are attempting to go full-steam ahead with inking the deal.

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Justin Klawans, The Week US

 Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.