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President Joe Biden has intervened in the proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, opting to block the deal, sources familiar with the matter revealed to the Washington Post on Thursday.
This decision, attributed to two anonymous administration officials, highlights the administration’s increasing focus on protecting U.S. industries from foreign takeovers, especially in sectors deemed vital to national security.
A White House announcement regarding the president’s decision is anticipated as soon as Friday, unless President Biden has a sudden change of heart, a shift that officials do not expect, according to the Washington Post.
This planned revelation will likely offer additional details on the reasoning behind the decision, which is expected to have ripple effects on foreign investment policies.
In the face of mounting pressure from his senior advisers, who warned that rejecting a $14.9 billion investment from a leading Japanese corporation could create friction between Washington and Tokyo, President Biden ultimately decided to block the deal.
The Washington Post reported that the president’s decision underscores his commitment to prioritizing national security and American interests, even at the risk of diplomatic consequences.
The White House remained silent late Thursday evening, offering no immediate statement on the report. The decision ultimately fell to President Biden after a U.S. government panel, which had been reviewing the national security implications of the proposed $14.9 billion acquisition, failed to reach a consensus on the matter in late December.
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The controversial transaction was referred to Biden, who was legally required to act within a 15-day deadline, after the deadlock by the Committee on Foreign Investment in the United States (CFIUS).
Biden has criticized the deal for months, joining a loud consensus of US power players who have slammed the transaction.
They include President-elect Donald Trump and the incoming vice president, JD Vance.
The deal became caught up in the 2024 US presidential campaign when Pennsylvania emerged as a critical swing state and leaders of the United Steelworkers union loudly opposed the transaction.
Nippon Steel has described the transaction as a lifeline to Pennsylvania’s much-diminished steel industry.
The Japanese company and US Steel have vowed to pursue legal action against the government, claiming it failed to follow proper procedures during its consideration of the acquisition.
