Biden blocks Japanese acquisition of US Steel, citing national security concerns

(MENAFN) Despite concerns that the action may damage Washington’s ties with Tokyo and deter other foreign investors, US President Joe Biden has fulfilled a Political pledge by preventing a larger Japanese company from acquiring US Steel.

In order to maintain the strength of the US steel sector and its supply networks, Biden rejected the purchase of Nippon Steel, citing national security concerns.

Following pressure from the United Steelworkers union, which had rejected a deal that was a contentious political issue during the US presidential campaign of 2024, he intervened.

Biden’s decision has been deemed “incomprehensible” by the Japanese authorities. Biden’s decision, according to Nippon Steel and US Steel, demonstrated that the transaction review process had been “corrupted” for political purposes.

The two businesses announced Friday that they would take “appropriate action to protect their legal rights” after threatening to sue the government if the merger did not go through.

“We believe that President Biden has sacrificed the future of American steelworkers for his own political agenda,” the firms reads in a statement, adding that the move sent “a chilling message to any company based in a US allied country contemplating significant investment in the United States”.

MENAFN04012025000045016953ID1109054562

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}