President Joe Biden blocked Nippon Steel's proposed $15bn acquisition of US Steel today citing national security concerns with a Japanese company owning a major US steelmaker.
Biden said evidence suggests that Nippon Steel "might take action that threatens to impair the national security of the US" if it owned US Steel.
Nippon Steel, based in Tokyo, proposed buying US Steel in December 2023, outbidding other suitors, including US steelmaker Cleveland-Cliffs.
US Steel corporate leadership said Nippon's investment would be the best way forward for the Pennsylvania company's aging integrated steel mills in Pittsburgh and northern Indiana. The United Steelworkers labor union opposed the sale to Nippon from the outset.
US Steel shareholders approved the acquisition last year, but the merger became a political issue during the presidential election, which centered around Pennsylvania's electoral votes.
Both Biden and president-elect Donald Trump vowed to block the sale of US Steel, which is among the top four US steelmakers, but no longer the powerhouse it was in the 20th century.
Biden's move could have broader implications for foreign investment, in part because Japan is a staunch US ally in Asia.
Nippon Steel did not immediately respond to a request for comment on its plans for the deal.
Biden's statement today said Nippon must abandon the deal within 30 days.
