US President Joe Biden has decided to block the proposed $14.9 billion purchase of US Steel by Japan’s Nippon Steel, according to reports from the Washington Post.
The decision comes after a US government panel failed to reach a consensus on whether the acquisition posed a threat to national security. The Committee on Foreign Investment in the United States (CFIUS) referred the transaction to Biden, who had 15 days to make a decision.
Biden’s Decision Despite Opposition
Despite efforts by some senior advisers to sway his decision, Biden chose to block the deal, citing concerns over national security. The decision may strain relations between the US and Japan, with some warning that it could damage Washington’s ties with Tokyo.
Background of the Deal
The proposed acquisition had been met with opposition from various stakeholders, including US lawmakers and the United Steelworkers union. Nippon Steel had described the transaction as a “lifeline” to Pennsylvania’s steel industry, but critics argued that it posed a risk to national security.
Next Steps
Nippon Steel and US Steel have vowed to pursue legal action against the US government, claiming that the decision was made without following proper procedures. The move is likely to spark a lengthy legal battle, with significant implications for the future of the US steel industry.
Source: Punch
