Joe Biden blocked the takeover of the American steel company US Steel by Japanese Nippon Steel. According to the US president, giving up such a large steel producer would pose a risk to national security. The transaction size was expected to be approximately $15 billion.
“Steel production and the workers who produce it are the backbone of our country. A strong domestic steel industry is a core national security priority and critical to the resilience of supply chains,” Biden said in a statement.
Biden blocked the sale of US Steel
“As president, I have a great responsibility to ensure that, now and in the future, America has a strong domestic steel industry that can continue to fuel our domestic sources of strength at home and abroad. Fulfilling that responsibility is to block foreign ownership of this important American company,” he added. .
Biden thus fulfilled his election campaign promise when he announced that he would not allow the Pittsburgh company to be taken over. Takeover plan for approximately USD 15 billion. the third largest steel producer in USA by Nippon Steel, the fourth largest steel company in the world, was announced in December 2023.
The president-elect also expressed his opposition to the transaction Donald Trump. Both steel companies announced they would appeal the decision to court.
American steel company US SteelShutterstock
Nippon Steel and relations with Japan
According to the Washington Post, Biden made the decision despite intense efforts by his advisers to dissuade him, warning that it could harm relations with Japan.
The CFIUS committee responsible for analyzing the potential risk to foreign investments in the US did not reach a consensus in issuing a recommendation. According to the Washington Post, however, CFIUS warned that the takeover could result in a reduction in steel production in the United States, which in turn could impact US national security.
In addition to Nippon Steel, the largest steel producers in the world include China Baowu Group, ArcelorMittal and Ansteel Group. In recent years, US Steel has been among the third ten largest steel producers in the world.
Main photo source: PAP/EPA/WILL OLIVER / POOL