President Joe Biden announced on Friday his decision to halt the $14.3 billion acquisition of US Steel by Japan's Nippon Steel, highlighting concerns about national security implications associated with foreign control of one of America’s key steel producers.
"Steel production and the workers behind it are the backbone of our nation," Biden emphasized in a statement. "Maintaining a robust, domestically owned, and operated steel industry is a crucial national security priority that supports resilient supply chains."
The President also addressed the longstanding issue of unfair trade practices, stating, "For years, U.S. steel companies have endured foreign competitors dumping steel on global markets at artificially low costs, causing job losses and factory shutdowns in America. My administration has taken decisive steps to create a level playing field for American steelworkers and producers by tripling tariffs on steel imports from China. With historic investments in manufacturing, more than 100 new steel and iron mills have opened since I took office, ensuring U.S. companies lead in producing the cleanest steel globally."
The move against the deal, initially announced a year prior, aligns with incoming President-elect Donald Trump’s position, as he also expressed intent to prevent its completion upon assuming office.
In 2023, Nippon Steel had proposed an all-cash acquisition of US Steel, offering $55.00 per share, totaling $14.9 billion. This transaction had secured regulatory approval outside the United States.
Recently, the Committee for Foreign Investment in the United States informed President Biden of its inability to reach a consensus regarding the potential national security risks posed by the sale of US Steel to Nippon Steel.
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