Biden Blocks Nippon Steel's Bid for U.S. Steel Amid National Security Concerns

U.S. President Joe Biden has blocked Nippon Steel's $14.9 billion acquisition of U.S. Steel over national security concerns. This decision follows an extensive review by CFIUS and political opposition in the U.S., despite assurances from Nippon Steel to maintain steel production and jobs in America.

U.S. President Joe Biden has effectively shut down Nippon Steel's $14.9 billion bid to take over U.S. Steel, citing concerns about potential national security implications. This move comes after a comprehensive evaluation by the Committee on Foreign Investment in the United States (CFIUS), which scrutinized the deal for possible risks.

The merger between Nippon Steel and U.S. Steel had faced significant political opposition within the United States, with both Biden and former President Donald Trump voicing apprehensions regarding foreign ownership of such a crucial American industry. The companies had made efforts to alleviate these concerns, including pledging to relocate Nippon's U.S. base to Pittsburgh and supporting existing agreements with the United Steelworkers.

Nippon Steel's attempt to persuade U.S. authorities included advocating that the investment would bolster U.S. Steel's production capabilities. However, these assurances failed to sway the decision, leading to the termination of the deal, potentially affecting jobs and operations at U.S. Steel's facilities. Meanwhile, Japan's government also campaigned for approval, emphasizing the importance of U.S.-Japan relations.

(With inputs from agencies.)