Shares of United States Steel were rising after the government decided to delay a review of the company's potential takeover by Japanese steel firm Nippon Steel.
Key Points: U.S. Steel is struggling financially and needs a buyer, with Nippon Steel offering a potential solution.
A national security committee reviewing Nippon Steel's bid for U.S. Steel granted a request by the companies to refile their bid for approval of the deal, a person familiar with the matter said on Tuesday, giving the Biden administration until after the U.S. presidential election to make a decision about whether to block the deal.
United States Steel stock surged nearly 9% during Wednesday's trading, recovering somewhat from more than a 30% correction in its price from the beginning of the year, after a revival in discussions around the company's acquisition by Nippon Steel Corporation. Incidentally, the stock is currently trading 10% higher compared to a year back, indicating it has been a volatile period for the United States Steel stock, since back in December 2023 when Nippon Steel entered into a definitive arrangement to acquire the company at a valuation of $55 per share.
Key Points: U.S. Steel is struggling financially and needs a buyer, with Nippon Steel offering a potential solution.
White House officials have signaled a delay in taking a decision regarding the takeover of U.S. Steel by Japan's Nippon Steel , the Washington Post reported on Friday.
The Biden administration's opposition to Nippon Steel's acquisition of U.S. Steel is bound to scuttle the deal, but Japan is unlikely to back away from its overall investments in the U.S.
U.S. Steel (X) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.
In addition to greater strength and flexibility, X is providing an exclusive 25-year warranty on ZMAG-coated steel.
The stock market occasionally offers investors an unfair risk-to-reward setup to take advantage of some of the best and most stable stocks. Today, there's no apparent recession or systemic discount across the market.
United States Steel Corp (NYSE:X) stock is up 4.1% at $32.55 at last check, after an upgrade from JPMorgan Securities to "overweight" from "neutral," and at GLJ to "buy" from "sell.
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