Biden to raise concern over Nippon Steel's deal for U.S. Steel: Reuters

U.S. President Joe Biden plans to express concern over Nippon Steel's proposed $14.9 billion purchase of U.S. Steel, a person familiar with the matter said on Wednesday, pushing the U.S. company's stock nearly 13% lower on bets the deal could face greater political opposition.

The issue has the potential to overshadow an April 10 summit between Biden and Japanese Prime Minister Fumio Kishida aimed at boosting the long-standing security alliance between their countries in the face of growing Chinese strength.

In December, Nippon Steel clinched a deal to buy the 122-year-old iconic U.S. steelmaker for a hefty premium, betting that U.S. Steel would benefit from the spending and tax incentives in Biden's infrastructure bill.

However, several Democratic and Republican U.S. senators have criticized the deal, citing national security concerns or raising questions about why the two companies did not consult U.S. Steel's main union ahead of the announcement.

Donald Trump, Biden's rival in the November U.S presidential election, has said he would block the acquisition of U.S. Steel if elected. The White House said in December the deal needed to be carefully scrutinized given U.S. Steel's core role in producing a material that is critical to national security.

The White House declined to comment on Wednesday, but a person familiar with the matter said Biden would issue a statement about the planned acquisition before Kishida arrives for his state visit.

U.S. officials and lawyers have drafted the statement and the White House has privately informed the Japanese government of Biden's decision, according to the Financial Times, which first reported the news.

Japan's embassy in Washington did not immediately respond to a request for comment.