Biden Blocks US Steel Acquisition by Nippon Steel Citing National Security

President Joe Biden has formally blocked a proposed near-$15 billion acquisition of U.S. Steel by Nippon Steel of Japan due to 'national security' concerns.The decision, announced on Jan. 3, follows months of scrutiny by the Committee on Foreign Investment in the United States (CFIUS), which failed to reach a consensus and referred the matter to the president. Biden's executive order prohibits the transaction and mandates its full abandonment within 30 days.

Newsweek has contacted the White House and representatives from Nippon via email for comment.Why It MattersThe decision comes at a politically sensitive time as Biden prepares to depart the White House on Jan. 20. to make way for President-elect Donald Trump. U.S. Steel are considered a critical component of the country's defense and infrastructure. Biden's last-minute rejection of the deal suggests growing governmental tensions between maintaining domestic control over key industries and fostering international investment.Japan, a key ally and the largest foreign holder of U.S. debt, may see the decision as a strain on bilateral relations. The incoming Trump administration's 'America First' agenda means talks are unlikely to be resumed with enthusiasm.What to KnowThe proposed acquisition, first announced in December 2023, included Nippon Steel's commitment to invest billions in modernizing U.S. Steel facilities and maintaining jobs with $5,000 in closing bonuses to U.S. Steel employees, a nearly $100 million expense.They also promised to keep the U.S. Steel name and Pittsburgh headquarters. However, labor unions, led by the United Steelworkers, vehemently opposed the deal, questioning Nippon Steel's labor practices and its reliability as a trade partner.Why Doesn't Biden Support the Steel Merger?'As I have said many times, steel production—and the steel workers who produce it—are the backbone of our nation,' Biden said in an announcement on Frida

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Biden Blocks Nippon Steel's Acquisition of U.S. SteelPresident Biden rejected Nippon Steel's bid to acquire U.S. Steel, citing national security concerns. The Committee on Foreign Investment in the United States (CFIUS) feared that the deal could lead to reduced steel production, potentially harming industries vital to national security. Despite strong support from U.S. Steel shareholders, Biden's decision reflects his long-standing opposition to the deal.
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Biden Blocks Nippon Steel's US Steel AcquisitionPresident Biden blocked Nippon Steel's proposed acquisition of U.S. Steel, citing national security concerns. The Committee on Foreign Investment in the United States (CFIUS) was worried that the deal could lead to reduced production capacity at U.S. Steel, potentially causing supply shortages and delays affecting critical industries. Despite U.S. Steel's assurances regarding its headquarters and board composition, Biden ultimately rejected the deal.
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