President Joe Biden Blocks US Steel's Takeover By Japanese Giant Nippon Steel

United States Steel

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(RTTNews) - US President Joe Biden on Friday said he is blocking the $14.3 billion acquisition of US Steel (X) by Japan's Nippon Steel, claiming that foreign ownership over one of America's largest steel producers posed national security threat.

"As I have said many times, steel production - and the steel workers who produce it - are the backbone of our nation," he said in a statement. "A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains."

"For too long, U.S. steel companies have faced unfair trade practices as foreign companies have dumped steel on global markets at artificially low prices, leading to job losses and factory closures in America. I have taken decisive action to level the playing field for American steelworkers and steel producers by tripling tariffs on steel imports from China. With record investments in manufacturing, more than 100 new steel and iron mills have opened since I took office, and U.S. companies are producing the cleanest steel in the world," he added.

Biden has opposed the deal, which was announced a year ago. President-elect Donald Trump also said he opposes the deal and that he also would block it once he takes office.

In 2023, Nippon Steel agreed to acquire US Steel in an all-cash deal valued at $55.00 per share, totaling $14.9 billion. The deal had received regulatory approvals outside of the U.S.

Last month, the Committee for Foreign Investment in the United States notified Biden that it had not reached a consensus about whether or not US Steel's sale to Nippon would pose a national security risk.