Biden Blocks Nippon Steel's $15 Billion Acquisition of U.S. Steel

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Steel Industry,Acquisition,National Security

President Joe Biden blocked Japanese company Nippon Steel's $15 billion acquisition of U.S. Steel, citing national security concerns and the importance of a domestically owned steel industry. While the decision was welcomed by some Democrats, Gary, Indiana mayor Eddie Melton expressed disappointment, arguing that Nippon's investment and technology would have benefited the city's steel plant.

A major deal in the steel industry hit a major roadblock Friday after President Joe Biden blocked Japanese-based company Nippon Steel from acquiring U.S. Steel for $15 billion, a controversial deal that had been in the works for months."A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains," Biden said in a statement.

"We felt the technology that Nippon was bringing to this steel production process was going to help enhance and make it a cleaner process," Melton said."The criticism I received from supporting this deal was well worth it. I have to be the chief advocate for this community." He also said there was no clear evidence of national security threats, something Nippon leaders echoed in their statement Friday.“It is shocking — and deeply troubling — that the U.S. government would reject a procompetitive transaction that advances U.S. interests and treat an ally like Japan in this way," a statement from Nippon said in part.Feeling out of the loop? We'll catch you up on the Chicago news you need to know.

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Biden decides to block Nippon Steel's $15 billion acquisition of U.S. Steel: ReportThe White House is expected to announce U.S. President Joe Biden’s decision to block Nippon Steel’s $15 billion takeover bid of U.S. Steel on Friday.
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