Biden to block Nippon Steel’s takeover of US Steel, reports say

Canada Global (Web News) President Joe Biden has reportedly decided to block the $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, with an official announcement expected as early as Friday. The decision is expected to be based on national security concerns, according to multiple sources, including The New York Times, The Washington Post, and Bloomberg.

The move follows the inability of the Committee on Foreign Investment in the United States (CFIUS) to reach an agreement on the potential national security risks associated with the deal. This decision comes just weeks before Biden is set to hand over the presidency to Donald Trump, who has also expressed opposition to the acquisition, calling it a “horrible thing.”

The proposed sale was seen as a significant issue in Pennsylvania, a key swing state that switched from Trump to Biden in 2020 and back to Trump in the 2024 election. The United Steelworkers union strongly opposed the deal, arguing it would harm American workers and jeopardize both the domestic steel industry and national security.

If the acquisition had gone through, US Steel would have become a subsidiary of Nippon Steel while retaining its name and headquarters in Pittsburgh. The deal, which was approved by US Steel’s shareholders, would have created one of the largest steel companies in the world.

Biden’s decision to block the sale may create tensions with Japan, a close ally of the U.S. in Asia and an important partner in efforts to counter China.

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