President Joe Biden has announced his decision to block the proposed $15 billion acquisition of U.S. Steel by Japan’s Nippon Steel, citing national security concerns.
In a statement, President Biden emphasized the importance of maintaining domestic ownership of critical industries:
“It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company.”
The decision follows a review by a committee of national security and trade experts, which concluded that foreign control of one of America’s largest steel producers could pose risks to national security and critical supply chains.
The United Steelworkers union opposed the proposed sale, while U.S. Steel had expressed hope that the deal would proceed, stating that it was the best way to ensure the company’s future success.
President-elect Donald Trump had also expressed opposition to the deal, pledging to block it if elected.
U.S. Steel, once the largest company in the world, has seen its global ranking decline to the 24th largest steel producer as of 2023, according to the World Steel Association.