U.S. President Joe Biden has decided to officially block Nippon Steel's proposed purchase of United States Steel, The Washington Post reported, citing two administration officials who were not authorized to speak publicly about the matter.
The Committee on Foreign Investment in the United States had referred the decision to approve or block the deal to Biden, who will leave office on Jan. 20.
Biden's call to block the deal was taken despite contrary efforts by some of his senior advisers over concerns that it could damage U.S.-Japan relations, the report said.
A White House spokesperson declined to comment on the report. A source told Reuters a decision by Biden was expected as soon as Friday.
A spokesperson for Nippon Steel declined to comment on the report.
U.S. Steel directed Reuters to a statement shared earlier on Thursday that said it hoped "Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security."
NicodemusV on January 3rd, 2025 at 07:30 UTC »
Blocking badly needed foreign investment in legacy U.S. industries such as steel is only going to hurt the U.S. in the long run. Japan is a long time major ally of the U.S. and Nippon Steel’s investment in American steel production could’ve propelled these old and dilapidated production faculties into the next generation.
Unfortunately, the shortsightedness of United Steelworkers union leadership will ensure U.S. Steel continues to consolidate its operations and risk the rest of their jobs.
It makes no sense to assume Nippon Steel will let production capacity simply rot away in a mothball state as union leadership argues, as they have offered to allow American control over any proposed cuts to production.
The real alternative to the sale is to let U.S. Steel fall into continued recession and continued consolidation, absent major investment and competence from the incoming Trump administration.
HumberGrumb on January 3rd, 2025 at 07:09 UTC »
The workers wanted long term commitments from Nippon Steel.
The-first-laugh on January 3rd, 2025 at 06:50 UTC »
SS: Biden has decided to block the sale of US steel to Nippon steel. While the majority of US steel shareholders have approved the purchase, the steel union had opposed the sale.
The PM of Japan had urged for the sale to go through as halting/blocking it would mire the efforts to bring both allies even closer. However, it seems like Biden has decided to block the sale; the question is how will Japan respond as Nippon steel was apparently offering multiple gifts, including a veto power to the US government.