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WASHINGTON: President Joe Biden has blocked the nearly $15 billion proposed deal for Nippon Steel of Japan to purchase Pittsburgh-based US Steel – affirming his earlier vow on the presidential campaign trail to prevent the acquisition of Steeltown USA’s most storied steel company. “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,” Biden said.
Nippon Steel and US Steel blasted the decision, saying in a joint statement that Biden’s blocking the deal “reflects a clear violation of due process and the law” in a process it said was “manipulated” to advance Biden’s political agenda. It also insisted that Biden cited no credible evidence of the deal presenting a national security problem and suggested it will sue, saying “we are left with no choice but to take all appropriate action to protect our legal rights.”
The Committee on Foreign Investment in the United States spent months reviewing the deal for national security risks but referred the decision to Biden in Dec, after failing to reach consensus. The move comes just weeks before the Democratic president is set to leave office and could damage ties between the US and Japan – America’s biggest ally in Asia and its largest foreign holder of US debt.
Nippon Steel announced in Dec 2023 that it planned to buy the steel producer for $14.9 billion in cash and debt, and committed to keep the US Steel name and PittsburghHQ. Despite that, its proposal raised concerns about what the transaction could mean for unionised workers, supply chains and US national security. On Friday, Steelworkers president David McCall called Biden’s decision the “right move for our members”.
The announcement came during a tide of renewed support for rebuilding US manufacturing sector and followed a long stretch of protectionist tariffs that analysts say have helped reinvigorate domestic steel.
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