President Joe Biden has formally blocked a nearly $15 billion acquisition deal in which Japan’s Nippon Steel sought to purchase Pittsburgh-based U.S. Steel. This decision reaffirms Biden’s earlier promise made in March to prevent the transaction from going through.
In a statement released on Friday, Biden emphasized the importance of maintaining strong U.S. steel industry leadership in the national interest. He argued that it is vital for major U.S. companies, which control a significant portion of the nation’s steelmaking capacity, to remain independent and continue advocating for America’s economic and security interests.
The decision follows a review by the Committee on Foreign Investment in the United States (CFIUS), which is tasked with assessing the national security risks of foreign investments in U.S. companies. Although CFIUS, chaired by Treasury Secretary Janet Yellen, was unable to reach a consensus on the potential security implications of the proposed deal, it submitted its findings to President Biden. Under U.S. law, the president has the authority to block such transactions based on national security concerns, and Biden was given a 15-day window to make a final decision.
The CFIUS committee, which includes other high-ranking Cabinet members, plays a key role in scrutinizing foreign mergers and acquisitions to prevent any risks that could harm U.S. interests. The proposed merger had sparked debates on whether the deal might impact the U.S. steel industry’s competitive edge, as well as concerns about the strategic implications of allowing a foreign entity to control a major American steel manufacturer.
Despite this setback for Nippon Steel, the company’s interest in U.S. Steel remains significant given the importance of the U.S. steel market, which has long been a key player in global manufacturing and infrastructure. However, Biden’s decision underscores the administration’s priority to safeguard U.S. industries against foreign control that could pose potential risks to the country’s economic and national security.
