US President Joe Biden on Friday rejected Japan’s proposed acquisition of US Steel. Nippon Steelvalued at approximately $15 billion, keeping its previous promise to avoid the takeover.
“We need the big American companies that represent the majority of the country’s steel capacity to continue leading the fight on behalf of America’s national interests,” Biden said.
The decision was made when CFIUS was unable to reach an agreement on potential national security implications last month. The committee presented its evaluation to Biden, who had fifteen days to make his final decision.
The committee, headed by Treasury Secretary Janet Yellen and including other Cabinet officials, has the authority to advise the president on blocking transactions, and federal law grants the president that authority.
This statement came after President-elect Donald Trump also expressed his opposition to the acquisition, stating on Truth Social his intention to block it and implement tax incentives and tariffs to strengthen the company.
Steelworkers union leader David McCall backed Trump’s position last month and called for rejection of the deal.
An unnamed U.S. official revealed to The Associated Press that certain federal agencies within the committee questioned whether Japanese ownership of a U.S. steelmaker would raise genuine national security concerns..
This ruling, announced as the Democratic president nears the end of his term, could affect diplomatic relations with Japan, the United States’ main Asian ally and the largest foreign owner of American government debt.
Biden initially opposed the deal in March, with support from the United Steelworkers, which expressed concerns about compliance with the labor agreement, potential job losses and corporate financial transparency.
“It is important that we maintain a strong American steel companies powered by American steelworkers,” Biden declared in March, during his presidential campaign before withdrawing from the race. “US Steel has been an iconic American steel company for more than a century, and it is vital that it remains an American steel company . that is nationally owned and operated.”
Nippon Steel’s December announcement of its $14.1 billion cash offer included commitments to retain the US Steel name and Pittsburgh headquarters. However, concerns persisted about the implications for unionized workers, supply chains and national security.
The proposal garnered support from several quarters, including lawmakers and organizations like the U.S. Chamber. Former Secretary of State Mike Pompeo criticized the potential rejection as “shortsighted” in the Wall Street Journal.
“The agreement would strengthen US Steel’s current operations and production capacity, benefit its workers and communities, and improve the competitiveness of US industry. steel industry“Pompeo wrote in December.