President Blocks Nippon Steel’s $14.9 Billion Acquisition of U.S. Steel
President Joe Biden has officially blocked the proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, citing national security concerns. The deal would have placed one of the largest steel producers in the U.S. under foreign control, creating a risk for the nation’s critical supply chains.
Biden’s decision comes after a months-long review by the Committee on Foreign Investment in the United States and opposition from the United Steelworkers union, which has fiercely opposed the takeover since it was announced in December 2023. The President had signaled as early as March 2024 that he intended to block the sale, backing the union’s opposition to the deal.
U.S. Steel’s stock opened down more than 7% following the President’s announcement. The company and Nippon had argued that the deal was the best way to keep the company competitive, revitalize communities in the American rust belt, and strengthen national security. However, Biden’s decision underscores a bipartisan swing toward protectionism in the U.S., as Democrats and Republicans alike seek to maintain domestic control over key industries as geopolitical tensions escalate around the world.
The President’s decision also shows that even staunch allies like Japan are not immune to the swelling protectionist tide. Tokyo is central to Washington’s efforts to keep China’s ambitions in the Indo-Pacific region in check. U.S. Steel CEO David Burritt had previously warned that the company will likely close plants if the deal falls apart.
