Market Chatter: US Bid to Block Nippon Steel's Purchase of US Steel Could Strain Ties, Japan's PM Candidate Warns

Japan's former defense minister Shigeru Ishiba, a frontrunner to become the next prime minister, called US plans to block Nippon Steel's (TYO:5401) $15 billion bid for US Steel "very unsettling," warning it could harm trust between allies, Reuters reported Friday.

The White House is reportedly close to blocking the deal on national security grounds, citing risks to US steel supply for critical projects, the report said.

Ishiba and rival candidate Taro Kono expressed concerns, with Kono pledging to raise the issue with Washington if elected. The bid faces opposition from US labor unions and both political parties. Analysts warn blocking the deal could strain US-Japan relations.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)