U.S. Steel-Nippon Steel Merger Blocked by Biden Over Security Concerns

U.S. Treasury Secretary Janet Yellen revealed that President Biden blocked Nippon Steel's acquisition of U.S. Steel due to national security concerns following a thorough CFIUS analysis. The companies allege bias in their lawsuit to contest Biden’s decision and seek a revised review process.

In a significant move, President Joe Biden has blocked the acquisition of U.S. Steel by Nippon Steel on the grounds of national security. This decision followed a comprehensive evaluation by the Committee on Foreign Investment in the United States (CFIUS), as disclosed by Treasury Secretary Janet Yellen in an interview.

The controversial merger, valued at $14.9 billion, became mired in legal battles after U.S. Steel and Nippon Steel filed a lawsuit alleging that the review process was compromised by President Biden's prior opposition to the merger.

CFIUS, chaired by Yellen, typically makes recommendations for such deals. However, in this instance, the panel failed to reach a consensus, deferring the decision to Biden. The issue is now embroiled in litigation, with the companies seeking a reassessment.

(With inputs from agencies.)