U.S. President Joe Biden has blocked the USD 14.3 bln acquisition of U.S. Steel by Japan’s Nippon Steel, citing national security concerns.
The deal, first announced in December 2023, has been politically contentious. Biden had expressed opposition to the acquisition, a stance echoed by President-elect Donald Trump, who also pledged to block it upon taking office.
In a statement, President Biden emphasized the need for major U.S. companies to maintain leadership in U.S. steel production to protect the nation’s interests. He explained, “We need major U.S. companies representing the major share of U.S. steelmaking capacity to keep leading the fight on behalf of America’s national interests. This acquisition would place one of America’s largest steel producers under foreign control, creating risks for our national security and critical supply chains.”
The Committee on Foreign Investment in the United States (CFIUS) spent several months reviewing the deal for potential national security risks but ultimately referred the decision to Biden in December after failing to reach a consensus.
Both Nippon Steel and U.S. Steel condemned Biden’s decision in a joint statement, calling it a violation of due process and an unlawful move. “We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of U.S. Steel, which reflects a clear violation of due process and the law governing CFIUS. Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda,” the statement read. The companies also argued that the President’s decision lacked credible evidence of a national security threat, labeling it a political maneuver. In response, they vowed to take legal action to protect their rights.
Founded in 1901, U.S. Steel is a major steel producer with an annual production capacity of 22.4 mln tons. 
