President Biden blocks the sale of US Steel to Nippon Steel

US President Joe Biden announced on January 3 that he had blocked the sale of US Steel to Japan's Nippon Steel for $14.9 billion.

"This acquisition would place one of America's largest steelmakers under foreign control and pose a risk to our national security and critical supply chains. That is why I am taking action to block this deal," President Biden stressed in a statement, according to AFP.

US President Joe Biden speaks about the economy at the Brookings Institution in Washington DC on December 10, 2024

Mr. Biden made the above decision after a long debate about domestic political , economic and commercial requirements.

Biden, who has made rebuilding America’s manufacturing base a key goal of his administration, has criticized the sale of US Steel to Nippon Steel for months, while also delaying a decision that could damage relations with Tokyo, according to AFP. Biden will leave office on January 20.

There is a rare bipartisan consensus on the issue, with US President-elect Donald Trump, a Republican, and Vice President-in-waiting JD Vance campaigning against the sale of US Steel to Nippon Steel.

Meanwhile, Nippon Steel sees the acquisition as a lifeline for a long-gone American company like US Steel. Opponents warn that the Japanese owner will cut jobs.

Nippon Steel has tried to ease concerns by pledging to halt any layoffs or closures of unionized facilities through its current union contract, which is set to expire in September 2026, according to AFP.

The decision on the US Steel-Nippon Steel deal was passed to President Biden after the Committee on Foreign Investment in the United States (CFIUS) failed late last month to reach a consensus on whether Nippon Steel's acquisition of US Steel would threaten US national security.

Nippon Steel and US Steel have vowed to pursue legal action against the government , claiming it failed to follow proper procedures in reviewing the acquisition, according to AFP.

Source: https://thanhnien.vn/tong-thong-biden-ngan-thuong-vu-ban-us-steel-cho-nippon-steel-18525010321421943.htm