Official announcements or press releases from U.S. Steel

Nippon Steel to Sue After Biden Blocks $14.9 Billion U.S. Steel Deal Over Security Concerns

Jan 3, 2025, 09:19 PM

President Joe Biden has blocked the $14.9 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns. The decision has caused U.S. Steel's stock to plunge 6% and drawn sharp criticism from Nippon Steel, which labeled the move a "violation of due process" and plans to sue the U.S. government. Japan's Economy Minister Takeo Muto expressed disappointment, calling the decision "incomprehensible and regrettable." U.S. Steel's CEO David Burritt also criticized the block, describing Biden's action as "shameful and corrupt." The proposed deal was expected to modernize U.S. Steel, create nearly 6,000 new jobs, and make it the largest producer in America. Pennsylvania Governor Josh Shapiro and Gary, Indiana Mayor Eddie Melton expressed concern over the decision's impact on local economies. While labor unions such as the United Steelworkers have praised the decision for protecting American jobs, others argue that the move strains relations with a key ally and undermines U.S. competitiveness. The block has sparked debate over the politicization of national security concerns and its potential harm to U.S. Steel's future.