President Biden has long expressed his disapproval for a deal in which Japan's Nippon Steel scoops up the iconic US Steel, and this week he made that disapproval official. In a Friday morning statement, the commander in chief rebuffed the proposed $14 billion-plus deal, noting that "we need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America's national interests," per the AP. Biden's reasoning: Such an arrangement between Nippon and US Steel would be a threat to US national security.
"It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad," Mr. Biden said in a statement on Friday morning, per the New York Times. Biden added: "It is a fulfillment of that responsibility to block foreign ownership of this vital American company."
Advocates for the deal have included US Steel workers, who say the company could use the financial boost, as well as former Secretary of State Mike Pompeo, who has noted that such a takeover could challenge China's dominance in the global steel market. Others say that reneging on the deal could harm relations between the US and Japan, per the Washington Post. The president's decision came after the Committee on Foreign Investment in the United States, or CFIUS, couldn't agree on just how risky to the nation such a deal would be, as it would possibly lead to a drop in American production of steel, and told Biden as much in its report to him.
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The Times calls Biden's move an "extraordinary use of executive power," especially in the waning days of his presidency. President-elect Trump has also said he'd block such a deal as president. Nippon indicated it would take legal action if the deal, OK'd by shareholders for the Pennsylvania-based company in April, fell through. It's not yet clear what US Steel's next move will be, though there are other takeover offers on the table. (More US Steel stories.)
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