Biden Blocks Nippon Steel's Bid for U.S. Steel Citing Security Risks

U.S. President Joe Biden blocked Nippon Steel's $14.9 billion bid for U.S. Steel over national security concerns. The decision impacts U.S. Steel, which hoped to receive nearly $3 billion in investments. The merger faced bipartisan opposition due to potential risks to critical infrastructure projects.

U.S. President Joe Biden has officially blocked Nippon Steel's bid to acquire U.S. Steel, a decision anchored on national security concerns. With a bid valued at $14.9 billion, the deal looked to bolster U.S. Steel's finances, though Biden's block halts an essential capital influx.

The move, expected by observers, follows a comprehensive national security review led by the Committee on Foreign Investment in the United States (CFIUS). CFIUS had until late December to determine the outcome, and with Biden's decision, it ends a high-profile saga that faced significant political opposition.

Despite Nippon Steel's attempt to alleviate doubts by branding their investment as necessary support from an allied nation, both Biden and former President Trump expressed apprehension, stressing that U.S. Steel should remain under American ownership. This decision has thwarted hopes for a resolution favoring the merger, following heightened security concerns.

(With inputs from agencies.)