Biden blocks Japanese steel giant Nippon’s $15 billion acquisition of US Steel

US President Joe Biden has decided to halt the $14.9 billion acquisition of US Steel by Japan-listed Nippon Steel.

US Steel said the decision to allow the deal to go ahead was referred to Biden on December 23 after the Committee on Foreign Investment in the United States failed to reach consensus on it.

Biden had 15 days to approve or block the deal after CFIUS’s assessment reached him, prompting Nippon to extend the deadline for the deal to the first quarter of 2025 from the third or fourth quarter of 2024.

CFIUS was concerned that Nippon would reduce US Steel’s production capacity, which could pose a risk to US national security.

The Washington Post reported that the Committee on Foreign Investment in the United States stated in its assessment that “the potential decline in U.S. Steel’s production could lead to shortages and delays in supplies that could affect industries vital to national security.”