The Japanese steel industry giant Nippon Steel saw its shares crumble in the intraday trade on January 7, 2025. The shares listed on the Tokyo Exchange slumped and dropped by 1.5 per cent after major development from the ocean came to pass.
Nippon Deal Blocked
Amid uncertainty over the deal, the US president, Joesph Biden blocked the proposed acquisition of US Steel by Nippon Steel.
This came to pass after failed negotiations between interested parties led the fate of the deal ending up on the resolute desk of Biden.
Biden has been a fierce opponent of the deal for a long time, and he did what was mostly expected. This acquisition deal was estimated to be worth USD 14.9 billion or about Rs 127 crore.
US President Joe Biden | File
Nippon To Sue US Government?
Biden’s decision to block the deal comes to pass amid larger American concerns about letting go of a strategically important company in a sector as imperative as the Steel sector. The control of such an important company, that too, to a foreign company irked many in Washington.
The Japanese steel company has reacted to this blocking by saying that it has the option of taking the US government to court over the abandonment of the deal.
As for Nippon, this was seen as a major deal, and an acquisition would have helped the company expand its business and its footprint in the sector, that does not seem to be slowing down.
Nippon Steel Corp Shares
The blockage of this deal also adds hindrance to the growth prospects of the company.
As a result of this, the shares of the company listed on the equity markets slumped on Tuesday’s trade. While, the shares of the company started the day on high at JPY 3,172, higher than the previous session’s closing of JPY 3,158, the tide quickly changed.
The value of the shares slipped quickly, and the decline continued even the period after the lunch break. At the time of writing, the overall slump stood at JPY 58.00 or 1.84 per cent. This took the overall value of the company shares to JPY 3,100.
It needs to be noted that the company shares gained 1.67 per cent or JPY 51.00 of its value in the past 5 trading sessions.