Joe Biden to Block Nippon Steel’s $14.9B U.S. Steel Bid | News9 Live
US President Joe Biden has officially blocked the $14.9 billion acquisition of US Steel by Japan’s Nippon Steel, citing national security concerns. The announcement came on Friday after months of political debate and intense scrutiny. Biden emphasized that keeping US Steel under American ownership is crucial for protecting supply chains and national interests.
The decision follows mounting pressure from the United Steelworkers union, which strongly opposed the deal. Union leaders argued that foreign ownership could threaten American jobs and the long-term stability of the steel industry.
In response, Nippon Steel and US Steel expressed their disappointment, calling Biden’s decision a politically motivated move. They claimed the review process had been “corrupted” and vowed to pursue legal action to protect their rights.
The Japanese government also voiced concerns, warning that the decision could damage economic relations and discourage future investments between the two allies. Japan’s Minister of Trade, Yoji Muto, said the government would carefully assess the implications of Biden’s move.
The deal, first announced in December 2023, was seen as a lifeline for US Steel, a company that has struggled financially in recent years. Nippon Steel had promised to safeguard jobs and invest in workforce training programs as part of the acquisition.
However, these assurances failed to sway the Biden administration. The President maintained that a domestically owned steel industry is vital for infrastructure, defense, and national resilience.
Political analysts believe the decision was heavily influenced by the upcoming US presidential election, with Pennsylvania—a key swing state—playing a significant role. Both Biden and former President Donald Trump opposed the deal, aligning with union concerns to secure voter support.
The Committee on Foreign Investment in the United States (CFIUS), which reviews such deals, failed to reach a consensus, leaving the final decision to Biden. Under his order, both companies now have 30 days to terminate the agreement unless further extensions are granted.
While shares of US Steel dropped by over 5% following the announcement, analysts speculate that this might not be the end of the road. Some believe the companies could revisit the deal under a new administration, potentially renegotiating terms to address national security concerns.
For now, Biden’s move underscores a growing trend of prioritizing domestic control over key industries, even at the risk of straining international alliances.
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