US blocked Nippon Steel's $14.9 billion bid for U.S. Steel due to national security concerns

From Investing.com: 2025-01-03 08:17:12

President Joe Biden blocked Nippon Steel’s $14.9 billion bid for U.S. Steel, citing national security concerns. The move cuts off vital investment for the struggling U.S. icon, threatening key mills. The decision followed a high-profile national security review and opposition from both Biden and Trump, who wanted to keep the company American-owned.

Nippon Steel proposed moving its U.S. headquarters to Pittsburgh and vowed to honor existing agreements with US Steel and USW. Despite initial concerns raised by CFIUS about the deal affecting steel supply, Nippon argued that its investment would actually boost U.S. Steel’s output. A 90-day review extension fueled hopes for approval, but those hopes were dashed in December.

Japanese Prime Minister Shigeru Ishiba had urged Biden to approve the merger to strengthen ties between the two countries. Japan, a key U.S. ally in the Indo-Pacific, faces challenges from China and North Korea. Nippon Steel aimed to increase global output capacity to 85 million metric tons per year, while U.S. Steel warned of job losses and potential mill closures without the deal.



Read more at Investing.com: US blocks Nippon Steel’s bid to purchase U.S. Steel By Reuters