Biden Blocks Nippon Steel's $14.9B Bid for U.S. Steel, Sparks Diplomatic Tensions

U.S. President Joe Biden blocked Nippon Steel's $14.9 billion bid for U.S. Steel due to national security concerns. The decision, opposed by Nippon Steel, was supported by the United Steelworkers union. The move has sparked diplomatic tensions between the U.S. and Japan, a key ally in the Indo-Pacific region.

U.S. President Joe Biden has officially blocked the proposed $14.9 billion acquisition of U.S. Steel by Nippon Steel on national security grounds, a decision that terminated more than a year of contentious negotiations.

This move underscores political opposition to the deal, despite Nippon Steel's attempts at compromise, including offering the U.S. government veto power over certain decisions. Both Nippon Steel and U.S. Steel criticized Biden's decision, labeling it politically motivated and vowing to pursue legal action.

The decision has reverberated beyond the corporate world, affecting diplomatic relations between the U.S. and Japan, with Japanese officials expressing regret over the decision. The blocked acquisition also prompted discussion about the strategic implications for both the domestic steel industry and U.S. foreign relations in the Indo-Pacific region.

(With inputs from agencies.)