Biden halts proposed USD14B sale of US steel to Japan's Nippon Steel over security concerns

(MENAFN) On Friday, President Joe Biden blocked the proposed USD14 billion sale of U.S. Steel to Japan's Nippon Steel, citing national security concerns and the importance of maintaining resilient supply chains. Biden, who had long opposed the sale, argued that allowing the transaction would place one of the largest steel producers in the U.S. under foreign control, which could potentially compromise national security and critical supply chains.

In his statement, Biden emphasized his responsibility as president to ensure that the U.S. maintains a strong, domestically owned and operated steel industry. He stressed the importance of having a steel sector that can continue to support the nation's strength both at home and abroad. Blocking the foreign ownership of U.S. Steel, he said, was part of fulfilling that duty to protect the country’s vital industries.

The decision came after the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on whether the sale posed a national security threat. This left Biden with 15 days to make his decision. President-elect Donald Trump also voiced opposition to the deal, aligning with Biden’s stance on the matter.

Both U.S. Steel and the United Steelworkers labor union, however, did not immediately comment on Biden's decision. The blocking of the sale ensures that U.S. Steel will remain a fully American-owned and operated company, continuing its legacy as a significant part of the American industrial landscape.

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