U.S. President Joe Biden said on Friday he would block Japanese company Nippon Steel’s buyout of U.S. Steel on national security concerns, delivering a potentially fatal blow to the $14.9 billion merger.
President Joe Biden has blocked the proposed $15 billion deal for Japan’s Nippon Steel to acquire Pittsburgh-based U.S. Steel, fulfilling his campaign pledge to block the sale of one of Steeltown USA’s most iconic steel companies.
The proposed deal sparked a political storm during an election year across America’s industrial heartland, and its rejection prompted Nippon Steel to threaten legal action.
“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a Friday morning statement.
Nippon Steel and U.S. Steel criticized the decision in a joint statement, calling Biden’s move to block the deal “a clear violation of due process and the law” and accusing the process of being ‘manipulated’ to serve his political agenda.
Biden cited no credible evidence that the deal presented a national security problem and suggested it would sue, saying, “We are left with no choice but to take all appropriate action to protect our legal rights.” AP reported.