Japan’s largest steelmaker, Nippon Steel, has vowed to continue its efforts to acquire U.S. Steel despite President Joe Biden blocking the USD 15 billion bid last week over national security concerns.
The decision to block the deal cast a shadow over U.S.-Japan relations, coinciding with outgoing Secretary of State Antony Blinken’s final visit to Japan, raising concerns about potential diplomatic fallout. Eiji Hashimoto, Chairman and CEO of Nippon Steel, stated that the company would not give up on the bid, emphasizing that it was critical not only for Nippon Steel’s strategy but also for the U.S.-Japan relationship.
Earlier this week, Nippon Steel and U.S. Steel filed a lawsuit against the Biden administration, claiming the decision was politically motivated to appease union members opposed to the deal. They argued it was unprecedented for a U.S. president to block an acquisition by a close ally like Japan.
The decision followed a review by the Committee on Foreign Investment in the United States (CFIUS), which could not reach a consensus. Biden’s move to block the acquisition aimed to keep U.S. Steel American-owned to safeguard critical supply chains and jobs.
Nippon Steel has stressed that under its ownership, U.S. Steel would remain American-run, with no layoffs or plant closures. The company also argued that the collapse of the deal would benefit China, the world’s largest steel producer.
The acquisition, announced in December 2023, quickly became controversial, particularly as it approached the U.S. election cycle. While some U.S. Steel employees supported the deal, it faced strong opposition from the United Steelworkers union.
Nippon Steel and U.S. Steel are also suing United Steelworkers President David McCall and Lourenco Goncalves, CEO of rival Cleveland-Cliffs, accusing them of illegally coordinating to block the transaction.
Hashimoto stated that in light of the challenges facing the U.S. steel industry, acquiring U.S. Steel was crucial for its future, and he argued that tariff policies alone would not strengthen the sector.
