Biden Blocks Nippon Steel's $14.9B U.S. Steel Deal; Nippon to Sue

Jan 4, 2025, 03:25 AM

President Joe Biden has blocked Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel, citing national security concerns. Nippon Steel plans to sue the U.S. government over the decision, calling it a "violation of due process and the law." Japan's industry minister Yoji Muto expressed disappointment, labeling the decision as "incomprehensible" and "regrettable." U.S. Steel's CEO David B. Burritt criticized the move as a "political" action that harms American workers and the steel industry, describing it as "corrupt." Following the announcement, U.S. Steel's shares fell 6.5% in the market. Conversely, the United Steelworkers union praised the decision, stating it was the "right action" for its members and national security. The blocking of the deal has raised concerns about U.S.-Japan relations and has been viewed by experts as a step away from globalization, potentially deterring foreign investment in the U.S. The future of U.S. Steel now appears uncertain, with potential job losses and financial challenges looming without the investment from Nippon Steel.