Pittsburgh, Pennsylvania – President Joe Biden’s recent statement regarding United States Steel Corporation (NYSE: X) has sparked considerable interest. The President assured the public that the company would remain under American ownership, pledging to prevent any foreign sale during his tenure. This declaration comes after U.S. Steel’s shareholders approved a $14.9 billion buyout offer from Nippon Steel Corporation, a Japanese steelmaker.

Before the Nippon merger agreement, speculation about a bidding war surrounding United States Steel led to a nearly 10% increase in the company’s stock. With Biden’s vow to maintain American ownership, questions arise about the feasibility of his promise and its potential impact on the company’s stock price.

Political implications are also a concern, given the upcoming U.S. general election and the significance of securing the working-class vote. The Biden administration’s stance on the acquisition may be seen as a strategic move during an election year. Regulatory bodies such as the Department of Justice and the SEC will play a role in overseeing any potential breaches of M&A laws or antitrust issues.

Despite uncertainties, the $55 per share offer from Nippon represents a substantial premium above U.S. Steel’s current market price. If the deal is blocked, there is a possibility of a lower premium-to-acquire, but the likelihood of selling below market value is slim for a profitable company like U.S. Steel.

Looking at the broader economic landscape, factors such as ongoing M&A uncertainty, economic fluctuations, and technical indicators raise concerns about the stock’s performance. While external events like the pending takeover and political opinions influence U.S. Steel’s stock price, the underlying demand for a takeover remains strong.

In conclusion, while risks exist, including technical challenges and economic uncertainties, the overall outlook for U.S. Steel is positive. The company is viewed as undervalued, with potential for growth even amidst current market conditions. Despite challenges, a Buy rating is maintained for U.S. Steel, indicating confidence in the company’s future prospects.