According to Reuters, Biden is blocking the sale of US steel to a Japanese buyer
WASHINGTON/TOKYO (Reuters) – U.S. President Joe Biden has decided to formally block Nippon Steel’s planned $14.9 billion purchase of U.S. Steel, the Washington Post reported, putting an end to a long-running and controversial merger plan .
The Committee on Foreign Investment in the United States (CFIUS) had previously referred the decision to approve or block the deal to Biden, who will leave office on January 20.
Biden’s call to block the deal was accepted despite efforts to the contrary by some senior advisers who feared it could harm U.S.-Japan relations, the paper said.
It cited two administration officials who were not authorized to speak publicly about the matter.
A White House spokesman declined to comment on the report. A source told Reuters that a decision from Biden was expected as early as Friday. A spokesman for Nippon Steel declined to comment on the report.
US Steel referred Reuters to a statement earlier Thursday that said it hoped “Biden will do the right thing and follow the law by approving a transaction that so clearly strengthens U.S. national and economic security.” “
Nippon paid a hefty premium to secure the purchase of the second-largest U.S. steelmaker in an auction in December 2023, but the deal faced opposition from the powerful United Steelworkers (USW) union and politicians.
Biden has said he wants US Steel to be domestically owned and operated, while President-elect Donald Trump has vowed to block the deal after he takes office in January.
Despite the opposition, US Steel shareholders voted overwhelmingly in favor of the takeover last April.
The two companies have also worked to address concerns about the merger. Nippon has offered to move its U.S. headquarters to Pittsburgh, where the U.S. steelmaker is based, and promised to honor all agreements in place between US Steel and USW.
This week, a source familiar with the matter said that Nippon Steel had proposed giving the U.S. government veto power over possible cuts to U.S. Steel’s production capacity as part of its efforts to win Biden’s endorsement.
Japanese Prime Minister Shigeru Ishiba urged Biden to approve the merger so as not to jeopardize recent efforts to strengthen ties between the two key allies, Reuters reported in November.
The Japanese stock market was closed on Friday for a holiday. Shares of US Steel closed down 4.1% on Thursday.
Due to the holiday, METI, Japan’s Industry Ministry and a spokesman for Ishiba could not be reached for comment.
