Japanese firm Nippon Steel has condemned President Joe Biden's decision to block its proposed $15bn acquisition of US Steel citing national security concerns arising from a Japanese company owning a major US steelmaker.
The US president has "sacrificed the future of American steelworkers for his own political agenda", Nippon Steel said.
"It is clear that the CFIUS (committee on foreign investment in the United States) process was deeply corrupted by politics and the outcome was pre-determined to satisfy the political objectives of the Biden administration," Nippon Steel added. The company pledged to save the deal by "taking all appropriate action to protect our legal rights".
Nippon Steel warned that Biden's decision sends a chilling message to any company based in a US-allied country contemplating significant investment in the US. "It is shocking and deeply troubling that the US government would reject a pro-competitive transaction that advances US interests and treat an ally like Japan in this way," the company said.
Biden's decision is hard to understand and regrettable, especially given that it was made after consideration of US national security, Japan's trade and industry minister, Yoji Muto, said. Tokyo will seek to clarify with the Biden administration the decision-making process followed by the CFIUS, Muto added.
Japan's trade and industry ministry (Meti) agrees with Nippon Steel that the transaction would contribute to sustaining steel production capacity and employment in the US economy, Muto said, adding that the acquisition would be of mutual benefit. "The deal is to promote collaboration on advanced technologies and increase the competitiveness of the US and the Japanese steel industry," he added.
The Japanese government must take this matter seriously, Muto reiterated, given growing concern among Japanese industries regarding the future US-Japan investment climate.
Japanese business federation Keidanren in September wrote an open letter to US treasury secretary Janet Yellen, who chairs the CFIUS, expressing concern about political pressure being brought to bear on the committee.
