Sunday 05 / January / 2025
Outgoing US President Joe Biden has blocked a controversial $14.9 billion (roughly €14.4 billion) deal which would have seen the beleaguered US Steel company sold to Japan's Nippon Steel, citing concerns that it could hurt national security.
"This acquisition would place one of America's largest steel producers under foreign control and create risk for our national security and our critical supply chains," Biden said in a statement. "That is why I am taking action to block this deal."
The president added that "we need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America's national interests."
Block cuts vital investment
Biden had vowed to block the acquisition back in March. But his Friday decision follows the failure last month of the Committee on Foreign Investment in the United States (CFIUS) to reach consensus on the potential national security risks of the deal.
The CFIUS sent a report on the merger to Biden, and he had 15 days to reach a final decision.
"Steel production — and the steel workers who produce it — are the backbone of our nation," Biden said on Friday. "A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains."
The blocking of the deal severs a critical capital lifeline for the American steel icon. US Steel has said it would have to idle key mills if it fails to secure the $3 billion in promised investment from Nippon Steel.
The Japanese firm had paid a sizable premium in December 2023 to secure the purchase of US Steel, the country's second-largest steel producer. However, the controversial deal was opposed by the powerful United Steelworkers union (USW), as well as politicians.
The union welcomed Biden's decision on Friday, describing it as "the right move for our members and our national security."
"We're grateful for President Biden's willingness to take bold action to maintain a strong domestic steel industry and for his lifelong commitment to American workers," USW International President David McCall said in a statement.
Biden nixes US Steel takeover by Japanese rival
