The outgoing president made the announcement on Jan. 3.
President Joe Biden announced on Jan. 3 that he is blocking the proposed takeover of U.S. Steel by Japanese company Nippon Steel.
“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a statement detailing the reasoning behind his decision. “As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.”
Nippon Steel had proposed paying $15 billion to take over US Steel.President Joe Biden announced on Jan. 3 that he is blocking the proposed takeover of U.S. Steel by Japanese company Nippon Steel.
“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a statement detailing the reasoning behind his decision. “As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.”
Nippon Steel had proposed paying $15 billion to take over US Steel.
The Committee on Foreign Investment in the United States was unable to decide whether the deal should go through and referred the matter in December 2024 to Biden.
Biden had 15 days following the referral to block or approve the deal. If he had not acted, the deal would have been approved.
Nippon’s 2023 agreement included several concessions, including giving the U.S. government veto power over changes to output.
U.S. Steel shareholders voted in 2024 to approve the acquisition, though the proposal was opposed by the United Steelworkers union.
“We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of U. S. Steel,” Nippon Steel and U.S. Steel said in a joint statement.
