President of the United States, Joe Biden, has made the decision to block the proposed acquisition of US Steel by Japan’s Nippon Steel, which was valued at $14.9 billion. Sources within the administration revealed this information to the Washington Post. The official announcement from the White House is expected soon, possibly by Friday. Despite efforts by senior advisers to persuade him otherwise, Biden chose to reject the deal, even though there were concerns about potential repercussions on US-Japan relations. The White House has not yet commented on the matter publicly.
The decision ultimately fell on Biden after a government panel was unable to come to a consensus on whether the acquisition posed a threat to national security. This uncertainty led to the referral of the decision to the President within a 15-day deadline. Biden has been critical of the deal for some time, aligning with other prominent figures who have voiced their disapproval, including President-elect Donald Trump and Vice President JD Vance.
The acquisition stirred controversy during the 2024 US presidential campaign, particularly in Pennsylvania, where the United Steelworkers union strongly opposed the transaction. Nippon Steel viewed the deal as crucial for reviving Pennsylvania’s steel industry. Both Nippon Steel and US Steel have expressed intentions to challenge the government’s decision legally, alleging that proper procedures were not followed during the review process.