President Joe Biden has blocked the $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, citing national security concerns. U.S. Steel’s CEO, David Burritt, criticized the move as “shameful and corrupt,” accusing the administration of political bias and neglecting the company’s future and national security.
Statement from David B. Burritt, President and CEO, on Today’s Order by President Biden.https://t.co/85iuRNiCAM pic.twitter.com/h6rbOgiitW
— U. S. Steel (@U_S_Steel) January 3, 2025
Biden emphasized the importance of maintaining a domestically owned steel industry for national security and supply chain resilience. Despite Nippon Steel’s offer to invest billions in the U.S., the administration determined that foreign ownership could pose risks.
The United Steelworkers union supported Biden’s decision, expressing concerns over job security and adherence to union contracts. However, U.S. Steel and Nippon Steel criticized the decision as politically motivated and are considering legal action.
This decision has potential implications for U.S.-Japan relations, as Japan is a key ally and major investor in U.S. businesses. Japanese officials have expressed disappointment, and Nippon Steel may face penalties following the deal’s collapse.
U.S. Steel’s stock has declined significantly following the announcement, reflecting investor concerns about the company’s future prospects without the infusion of capital from the proposed acquisition.