International
Biden Blocks Nippon Steel’s $14.9 Billion Takeover of US Steel
- Biden halts $14.9bn Nippon Steel deal, citing national security risks
- Decision influenced by union opposition and 2024 election dynamics
- Nippon Steel and US Steel to pursue legal action after deal rejection
US President Joe Biden has officially blocked the $14.9 billion takeover of US Steel by Japan’s Nippon Steel, citing potential national security risks tied to foreign ownership.
Eko Hot Blog reports that the controversial decision, announced on Friday, follows intense opposition from the United Steelworkers union and political pressure during the 2024 presidential election in Pennsylvania, a pivotal battleground state.
The deal, initially described by Nippon Steel as a lifeline for the struggling Pennsylvania-based US Steel, faced resistance despite promises to preserve jobs and fund workforce training programs.
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Both Nippon Steel and US Steel criticized Biden’s move, accusing him of prioritizing political gain over economic and strategic considerations.
“President Biden has sacrificed the future of American steelworkers for his own political agenda,” the companies said in a joint statement, vowing to take legal action to protect their rights. They warned that the decision sends “a chilling message” to allied companies considering major US investments.
The Biden administration’s decision has sparked concerns about the future of US Steel, a 124-year-old symbol of American industrial strength that has significantly declined in recent years.
The company had been searching for a buyer to inject much-needed investment, with Nippon Steel emerging as a potential saviour.
However, Biden stressed the importance of maintaining domestic control of the steel industry, emphasizing its critical role in safeguarding US supply chains.
The rejection of the deal also drew criticism from President-elect Donald Trump and Vice President-elect JD Vance, who both opposed the transaction.
The government panel tasked with evaluating national security risks associated with the deal failed to reach a consensus, ultimately leaving the decision to Biden.
In his statement, he underscored the need to protect the steel industry’s long-term interests, even as critics warn of potential repercussions for international investment and relations with key allies like Japan.
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“As I have said many times, steel production – and the steel workers who produce it – are the backbone of our nation,” he said.
“That is because steel powers our country: our infrastructure, our auto industry, and our defence industrial base. Without domestic steel production and domestic steel workers, our nation is less strong and less secure.”
The United Steelworkers union called the decision the “right move for our members and our national security”, saying its opposition had been driven by concerns about the long-term viability of its industry.
“We’re grateful for President Biden’s willingness to take bold action to maintain a strong domestic steel industry and for his lifelong commitment to American workers,” President David McCall said.
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