Biden blocks US Steel acquisition by Japan’s Nippon

President Joe Biden blocked the $14.9 billion acquisition of US Steel (USS) by Japan’s Nippon Steel, citing national security concerns. He argued the deal would place a key American steel producer under foreign control and risk critical supply chains. 

While union leaders supported the move, many US Steelworkers feared job losses and welcomed the decision. Facing financial struggles, US Steel hoped the deal would fund upgrades, including a $2.7 billion investment in Pennsylvania facilities.

The decision may trigger legal challenges from both companies, who argue the review process was biased and the decision is politically motivated.

The rejection raised concerns about the US’s openness to foreign investment and its relationship with Japan. 

Nippon Steel, which planned to expand in the US, could pursue its own investments instead.