Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.
President Biden has officially blocked the $15 billion acquisition of US Steel by Japan’s Nippon Steel, citing national security concerns.
Some shit you should know before you read: Last year, Japan’s Nippon Steel announced its intention to acquire US Steel in a $15 billion deal, a move that raised immediate concerns among lawmakers and industry stakeholders. Nippon Steel said their acquisition would lead to modernizing US Steel’s aging infrastructure and expanding its foothold in the US market. The proposal quickly sparked alarm among Pennsylvania lawmakers, steelworkers, and unions, who worried about potential job outsourcing, weakened union protections, and threats to critical domestic supply chains.
What’s going on now: In an announcement, President Biden said he would block the $15 billion sale of US Steel to Japan’s Nippon Steel, citing national security risks and the critical importance of a strong, domestically owned steel industry. Biden said that steel production is essential to America’s infrastructure, defense, and economic resilience, describing the industry as the “backbone of our nation.” He argued that allowing one of the largest US steel producers to fall under foreign ownership would pose unacceptable risks to national security and undermine critical supply chains.
President Biden said, “We need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests.” He added, “It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company. US Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world.”
Reactions: Reactions related to President Biden’s move varied, with union leaders and workers strongly supporting the decision while some political figures expressed criticism. The United Steelworkers union praised the move as a critical step to safeguard union jobs and the long-term viability of US Steel’s facilities, calling it the “right move for our members and our national security.” Some critics, including former economic advisors, labeled the decision as politically motivated and argued it could deter foreign investment, harm US Steel’s competitiveness, and fail to deliver the intended protections for workers.
In a brief statement, Nippon Steel said, “We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of US Steel, which reflects a clear violation of due process and the law governing CFIUS. Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda. The President’s statement and Order do not present any credible evidence of a national security issue, making clear that this was a political decision. Following President Biden’s decision, we are left with no choice but to take all appropriate action to protect our legal rights.”
