Biden Blocks Proposed $14.9 Billion Nippon-U.S. Steel Deal Citing National Security

U.S. President Joe Biden has blocked Nippon Steel's $14.9 billion bid to acquire U.S. Steel, citing national security concerns and domestic production priorities. The decision follows extensive review and faces potential legal challenges from Nippon, which had aimed to increase its global output. The merger's failure could impact U.S. jobs and investor confidence.

In a significant decision with far-reaching economic and political implications, U.S. President Joe Biden has rejected Nippon Steel's bid to acquire U.S. Steel for $14.9 billion. The move, underscoring national security concerns, reflects Biden's commitment to maintaining a robust domestically controlled steel industry.

The Committee on Foreign Investment in the United States (CFIUS) had carried out an exhaustive probe into potential security risks. The decision was ultimately referred to Biden after CFIUS could not reach a consensus. Japan had lobbied hard for the approval, emphasizing its importance in bolstering U.S.-Japan ties, amid regional tensions in the Indo-Pacific.

The decision could have a ripple effect on international investments in politically sensitive industries within the U.S. Nippon Steel, determined to contest the rejection, faces a penalty and must reassess its global expansion strategy. The failure to seal the deal threatens thousands of jobs, an assertion contested by the United Steelworkers union.

(With inputs from agencies.)