Biden Blocks Nippon Steel's Acquisition of US Steel for National Security
In a decisive move, President Joe Biden announced on Friday his decision to block the acquisition of United States Steel Corporation (US Steel) by Japanese steelmaker Nippon Steel Corporation, citing national security concerns. The proposed transaction, which was valued at approximately $15 billion, faced scrutiny from both current and incoming administrations with former President Donald Trump indicating earlier that he would also oppose the deal once he takes office on January 20.
Biden articulated that this decision was part of his solemn duty as president to ensure the integrity and strength of the domestic steel industry. By blocking the acquisition, he aims to maintain US Steel as a proudly American entity, owned and operated by American workers, many of whom are unionized.
'Clearly, I will do everything in my power as president to safeguard our national security,' Biden stated. He emphasized the critical role that American companies play in sectors essential to national defense, highlighting the need to protect the country's infrastructure and the resilience of its supply chains.
The recommendation to block the transaction was brought to Biden’s attention by the Committee on Foreign Investment in the United States (CFIUS) on December 23. The president was required to reach a decision within 15 days, making this ruling one of his last significant directives before the end of his term.
Nippon Steel had recently announced an extension of the deadline to close the acquisition, pushing it to the first quarter of 2025 from a previous projection of late 2024. The company expressed confidence that a thorough and equitable assessment would guide the U.S. president's judgment, recalling its planned significant investments in US Steel’s facilities and workforce.
While the acquisition had garnered positive backing from US Steel’s shareholders, it also faced strong opposition from Trump, who proposed protective measures such as tariffs and tax incentives to shield the Pittsburgh-based company.
Biden's administration has made clear its intention to prioritize national security and support for domestic industries, and this action against Nippon Steel serves as a reflection of that policy framework.
Related Sources: