WASHINGTON: US President Joe Biden is expected to express serious concern over Nippon Steel Corp.’s plan to acquire United States Steel Corp., Western media outlets said Wednesday.

The move comes as Biden, who is supported by a labor union opposed to the acquisition, seeks to clinch a second term in the November U.S. presidential election.

He is expected to mention the negative impacts the buyout might have on national security, industrial infrastructure and employment.

According to the reports, Biden is seen issuing a statement ahead of Japanese Prime Minister KISHIDA Fumio’s visit to the United States planned for April 10. Washington is said to have unofficially informed Tokyo of the matter.

The British newspaper Financial Times reported that Biden will not explicitly oppose the acquisition.

After Nippon Steel announced the buyout last December, the Biden administration said that it will seriously scrutinize the deal from the perspective of security and supply chain reliability and that it is prepared to take appropriate action on the matter.

Some in Congress have voiced opposition to the acquisition plan.

Nippon Steel’s plan is undergoing a security-related screening by the Committee on Foreign Investment in the United States, which can advise the president to stop the deal if it determines that there is high risk.

The United Steelworkers union declared its opposition to the buyout last month, saying, “The proposed sale agreement between Nippon Steel and U.S. Steel puts our members’ and our nation’s interests in jeopardy.” It also said that the union has the backing of Biden on the matter.

Pennsylvania, where U.S. Steel is headquartered, is one of the key battleground states in the presidential election. Former President Donald Trump, who has all but secured the nomination from the Republican Party, has made it clear that he would immediately stop the acquisition if he returns to power.

JIJI Press