US President Joe Biden has blocked the acquisition of Japan's Nippon Steel by the national steel company U.S.Steel, the American leader said in a statement released by the White House press service.
The head of the outgoing US administration cited national security and trade experts who believe that “this deal would lead to foreign control of one of the largest American steel companies and would pose a threat to national security and key supply chains.” “For this reason, I am taking action to block this deal“, Biden said.
On January 1, the newspaper The Washington Post reported that Nippon Steel had made a new offer to the Biden administration to buy U.S. Steel, the terms of which actually allow the US authorities to prohibit any attempts to reduce production capacity in the US. At the same time, the newspaper's sources note that the outgoing administration is considering the possibility of transferring the decision on this issue to the team of the newly elected US President Donald Trump, whose inauguration will take place on January 20.
On December 24 last year, WP, citing sources, wrote that Biden is expected to impose a ban on the deal. According to the publication, the Committee on Foreign Investment in the US, subordinate to the Treasury Department, believes that the deal worth about $ 15 billion represents a “threat to national security”, as it could lead to a decrease in steel production in the country. Representatives of Nippon Steel responded by stating their readiness to ensure that key positions in U.S.Steel will be filled by American citizens.
Nippon Steel announced its intention to acquire U.S. Steel in December 2023. The transaction was expected to be completed in the third or fourth quarter of 2024. The Japanese side expressed its readiness to repay the company's debts in the amount of about 742 million USD and to preserve its brand and production facilities in the United States.