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

President Joe Biden is expected to block Nippon Steel's acquisition of U.S. Steel due to national security concerns. The $14.9 billion deal is facing bipartisan opposition, risking thousands of union jobs and potentially impacting U.S.-Japan relations. The final decision is anticipated later this week.

President Joe Biden is reportedly on the verge of blocking Nippon Steel's $14.9 billion acquisition of U.S. Steel, citing national security concerns. The potential decision has already stirred bipartisan political opposition and could mean significant economic consequences, including risks to thousands of U.S. union jobs and steel mill closures.

The announcement could come as early as this week, according to sources. The Committee on Foreign Investment in the United States (CFIUS) has yet to provide formal recommendations, but the administration's stance is clear: American steel should remain American-owned. This development could affect the U.S. relationship with Japan, a crucial ally.

Despite opposition, both companies maintain that the deal poses no national security risks. U.S. Steel asserts it will explore all legal avenues to complete the transaction, while Nippon Steel urges appropriate legal procedures. Meanwhile, union workers rallying for the deal warn of severe economic fallout if it fails, including job losses and potential headquarters relocation.

(With inputs from agencies.)