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Biden blocks the sale of the American steel company, US Steel

2025-01-03 17:13:00, Kosova & Bota CNA

The President of the United States, Joe Biden, has rejected a deal proposed by the Japanese firm, Nippon Steel, worth nearly 15 billion dollars to buy the American steel company, US Steel.

"We need the major American companies that represent the majority of US steel production capacity to continue to lead the fight on behalf of America's national interests," Biden said in a statement Friday.

Biden's decision comes after the Committee on Foreign Investment in the US, known as CFIUS, failed to reach agreement on the risks the deal could pose to the country's national security last month.

A U.S. official, who spoke on condition of anonymity, told The Associated Press last month that some federal agencies represented on the CFIUS panel were skeptical that allowing a Japanese company to buy the U.S.-owned steelmaker would create risks to national security.

Biden had warned of blocking the sale of US Steel in March of last year and had been backed by steelworkers who worried whether the company would honor current labor agreements or cut jobs.

The decision also comes just weeks before the Democratic president leaves office and could damage relations between the US and Japan, America's biggest ally in Asia.

President-elect Donald Trump also opposes the deal and promised in December on his Truth Social platform that he would block the deal and use tax incentives and tariffs to grow the company.

On Friday, Steelworkers Union President David McCall said the union was grateful for Biden's action to block the sale and called it "the right thing to do for our members and national security."

Nippon Steel had said it was in the best position to help U.S. steel compete in an industry dominated by the Chinese and to invest billions in facilities represented by the U.S. Steelworkers union, including old furnaces the heat of the company.

She promised to defend US Steel in trade disputes and vowed not to import crude steel that would compete with blast furnaces.

Nippon Steel announced in December 2023 that it planned to buy the steelmaker for $14.9 billion in cash and debt, and committed to keeping its name US Steel and its headquarters in Pittsburgh./ Rel