Biden Blocks Nippon Steel's Acquisition of US Steel, Sparking Political Controversy

US President Joe Biden has blocked a USD 14.3 billion acquisition of US Steel by Japan's Nippon Steel, citing national security concerns. This decision, politically charged and supported by the United Steelworkers union, may discourage future foreign investments and poses challenges for US Steel's financial future.

In a significant move, US President Joe Biden announced on Friday that he will block the USD 14.3 billion acquisition of US Steel by Japan's Nippon Steel, citing national security concerns. Biden's decision comes after CFIUS was unable to reach a consensus on the potential risks, leaving the President to make the final call.

The decision is likely to have far-reaching implications for foreign investment in American enterprises, despite being politically popular within the United States. Both Biden and President-elect Donald Trump have opposed the deal, which has been a lightning rod for political debate since its announcement in December 2023.

Union concerns have played a major role, with the USW opposing the acquisition over fears regarding job security at US Steel's older mills. Despite a strong backlash from both companies involved, Biden's move highlights lingering apprehensions about foreign control over key sectors of the American industry.

(With inputs from agencies.)