President Joe Biden has blocked a deal valued at approximately $14.9 billion, in which the Japanese corporation Nippon Steel intended to acquire the American steel manufacturer US Steel. The relevant document was published on the official White House website.
The largest steel producer in Japan, Nippon Steel, announced its intention to acquire U.S. Steel in December 2023. The deal was expected to close in the third or fourth quarter of 2024. The Japanese side also expressed readiness to pay the company's debts, amounting to about $742 million, and to maintain its brand and production in the U.S.
In March 2024, Biden voiced his opposition to the deal. Former President Donald Trump also opposed the transaction. According to Reuters, Japanese Prime Minister Shigeru Ishiba sent a letter to Biden in November, strongly urging him to approve the deal.
However, on January 3, 2025, Biden signed an order prohibiting the transaction. The primary reason for this decision was cited as a threat to national security and the potential impact of the deal on critical supply chains.
According to the document, both parties are required to completely abandon the deal and cease all related activities within 30 days.
Both companies condemned the president's decision. "President Biden's decision demonstrates a clear violation of legal procedures and the law," the companies stated.
The companies emphasized that the deal would significantly strengthen the American steel industry, preserve jobs, and enhance the country's competitiveness in the global steel market.
"We believe that President Biden sacrificed the future of American steelworkers for his political agenda," the companies stated. They added that this decision "sends a chilling message to any company planning significant investments in the U.S."
Nippon Steel had also previously warned of its intention to sue in the event of the deal being blocked.
US Steel's shares fell by more than 5% following the announcement of the blockade. However, analysts note that this may not be the end of negotiations. With the arrival of a new Donald Trump administration, the companies may propose new terms for the deal that would allow it to be completed.
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