GateHouse and Gannett say their newspaper deal has cleared U.S. antitrust review. It still needs approval from European regulators and stockholders of both companies. The two say they expect the deal to close this year.
USA Today owner Gannett and GateHouse argue that combining will help them accelerate the path to digital for their newspapers even as they pay down debt from the deal. The combination would create the largest U.S. newspaper company in a contracting industry, with more than 260 daily papers in the U.S. and more than 300 weeklies.
Full Content: Imperial Valley Press
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President Joe Biden on Friday blocked Nippon Steel’s proposed $14.9 billion acquisition of US Steel. The decision, which had been anticipated for months, underscores the administration’s focus on safeguarding key sectors from foreign influence. According to Reuters, Biden emphasized that the transaction posed a threat to U.S. national security.
“We need major U.S. companies representing the major share of U.S. steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a statement. The administration’s decision aligns with recommendations from national security and trade experts who reviewed the deal over the past year.
Also Read: Trump Vows to Block Nippon Steel’s Acquisition of US Steel
Nippon Steel, a leading Japanese steelmaker, announced its intention to acquire U.S. Steel in December 2023. The proposed deal, valued at nearly $15 billion, was seen as a lifeline for the struggling American steel producer. According to Reuters, U.S. Steel had indicated that without the infusion of capital from Nippon Steel, it might be forced to shutter key facilities due to financial strain.
Despite the financial promise, the transaction drew strong opposition from lawmakers and union leaders, particularly in Pennsylvania, where U.S. Steel has deep roots. Concerns about job losses, the outsourcing of critical operations, and potential risks to supply chains fueled the pushback. Biden, addressing these concerns, reaffirmed his stance that maintaining a domestically owned and operated steel industry is crucial for the country’s infrastructure and defense.
“A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains,” Biden said. He added that steel is fundamental to several sectors, including infrastructure, automotive production, and national defense.
The president’s decision came after a year-long review by the Committee on Foreign Investment in the United States (CFIUS), which evaluates foreign transactions for potential national security risks. Per Reuters, while Biden had previously expressed opposition to the deal, the administration had not made an official ruling until now. Political considerations likely played a role in the timing of the announcement, given the administration’s efforts to court union voters and project strength on economic matters ahead of the upcoming election cycle.
The rejection of the Nippon Steel bid may have broader implications for foreign investment in key U.S. industries. Nippon Steel had previously hinted at possible legal action if the deal was blocked, although it remains unclear whether the company will pursue that route. Meanwhile, U.S. Steel expressed disappointment, having hoped that the Biden administration would approve the transaction to secure its financial future.
The president’s stance is consistent with his previous statements on the importance of keeping strategic industries under American control. According to Reuters, Biden’s remarks on Friday echoed his earlier comments from March, when he called it “vital” for U.S. Steel to remain domestically owned and operated.
In defending his decision, Biden reiterated that America’s strength and security are tied to its ability to produce essential materials like steel domestically.
“Without domestic steel production and domestic steel workers, our nation is less strong and less secure,” he said.
The blocking of the deal follows a broader trend in U.S. policy aimed at protecting critical industries from foreign control. According to Reuters, former President Donald Trump had also expressed opposition to foreign acquisitions in strategic sectors during his tenure, indicating that the issue transcends party lines.
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