U.S. President Joe Biden has blocked the proposed $14.9 billion acquisition of steel manufacturer “US Steel” by Japanese rival “Nippon Steel,” according to a BBC report.
In a statement from the White House, an executive order cited “credible evidence” that the deal could take actions threatening to harm the national security of the United States. Despite efforts by some of Biden’s senior advisors in recent days, who warned that rejecting such an investment from a powerful Japanese corporation like “Nippon Steel” could harm relations between Washington and Tokyo, the president decided to block the deal.
A U.S. government panel failed to reach a consensus in late December on whether the approval of “Nippon Steel’s” offer could pose a national security risk to the U.S. Biden was required to make a decision within 15 days following a deadlock in the Committee on Foreign Investment in the United States (CFIUS).
Biden had repeatedly criticized the deal, siding with a number of American politicians who had questioned the transition. These included U.S. President-elect Donald Trump and new Vice President JD Vance.
The deal became part of the 2024 U.S. presidential election debate when Pennsylvania became one of the key swing states, with the “United Steelworkers” union strongly opposing the deal. “Nippon Steel” had previously described the transaction as crucial for the steel industry in Pennsylvania, which has suffered in the past.
Both “Nippon Steel” and “US Steel” had previously suggested they might pursue legal action against the U.S. government if the deal is not allowed to go through.
