Biden to Block Nippon Steel's Acquisition of U.S. Steel Amid Security Concerns

President Joe Biden is expected to block Nippon Steel's $14.9 billion acquisition of U.S. Steel due to national security concerns, according to sources. The decision could affect U.S.-Japan relations and impact the 2024 presidential election as Pennsylvania, a key battleground state, is involved.

The White House is nearing an announcement that President Joe Biden will block Nippon Steel's acquisition of U.S. Steel over national security concerns, sources familiar with the situation disclosed on Wednesday. This decision comes amid mounting bipartisan political opposition to the $14.9 billion deal.

U.S. Steel had previously cautioned that failing to finalize the deal with Japan-based Nippon could endanger thousands of American union jobs and prompt the closure of some steel mills, alongside a potential relocation of its headquarters from Pennsylvania. A formal announcement could arrive as early as this week, insiders told Reuters.

The acquisition's fate is particularly critical for the 2024 presidential race, with both Vice President Kamala Harris and former President Donald Trump opposing the deal, each aligning themselves with the interest to keep U.S. Steel American-owned. Despite its shareholders' approval and foreign regulatory nods, the deal remains under regulatory scrutiny in the U.S.

(With inputs from agencies.)