Joe Biden Blocks $14.9 Billion U.S.-Japan Steel Deal Over National Security Concerns

In a landmark decision reflecting heightened national security concerns, President Joe Biden has blocked Japan’s Nippon Steel from acquiring U.S. Steel in a proposed $14.9 billion deal. Announced on January 3, 2025, the move underscores the administration’s commitment to protecting critical supply chains and safeguarding domestic industries from foreign control. Biden’s decision came after the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on the acquisition’s implications for national security. The president stepped in to resolve the stalemate, stating that foreign ownership of a major American steel producer posed unacceptable risks.

The administration’s decision aligns with its broader strategy to bolster domestic manufacturing and prioritize economic stability. The United St Harmankers union, representing many of U.S. Steel’s employees, praised the move.

“Keeping U.S. Steel Under American Ownership Is Essential For Safeguarding Jobs And Ensuring Our National Security,” a union spokesperson said. Nippon Steel and U.S. Steel expressed strong disappointment with the decision, calling it unjustified and politically motivated. In a joint statement, the companies said, “The President’s Statement And Order Do Not Present Any Credible Evidence Of A National Security Issue.” They also hinted at exploring legal avenues to challenge the decision, arguing that the acquisition would have provided much-needed financial lifelines for U.S. Steel, a company struggling to remain competitive amid fluctuating global demand and domestic challenges. Nippon Steel had pledged not to close unionized facilities or cut jobs during the current union contract, which runs until 2026, but these assurances failed to alleviate concerns.

source: reportafrique.com

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