US Steel shares fell on Wednesday as Wall Street questioned whether its $14.1 billion deal with Japan’s Nippon Steel is at risk of derailment.
Shares of US Steel fell as much as 25% in afternoon trading after the Washington Post reported President Joe Biden is preparing to formally block the proposed acquisition. By 2:35 p.m., shares of US Steel were down $7.12, or 20%, at $28.48.
At an afternoon briefing, a White House official played down the Washington Post report, citing three people familiar with the president’s plans. In a statement, the White House cited a review process by the Committee on Foreign Investment in the United States, or CFIUS, a panel chaired by the Treasury secretary.
“CFIUS has not sent a recommendation to the president, and that is the next step in this process,” a White House official said.
—This is a developing story and will be updated.