President Biden Blocks U.S. Steel Takeover by Japan’s Nippon”>Nippon Steel over National Security Concerns
WASHINGTON, D.C. – President Joe Biden has halted the attempted acquisition of U.S. Steel by Japan’s Nippon Steel, citing potential risks to U.S. national security. The proposed acquisition, valued at approximately $14.9 billion or Rp 241.33 trillion (based on an exchange rate of Rp 16,197 per USD), would have placed one of the largest U.S. steel producers under foreign control.
Biden expressed concerns that allowing the takeover would create risks within the supply chain of a critical commodity, indirectly impacting U.S. national security. The President emphasized his commitment to employing all available powers to maintain U.S. national security, including ensuring that American companies continue to play significant roles in crucial sectors.
The U.S. government had been reviewing the deal for several months, with the Committee on Foreign Investment in the United States (CFIUS) playing a direct role in the assessment. The U.S. Steel’s stock fell over 6% following the announcement.
Proponents and Opponents of the Blocked Acquisition
In a joint statement released on Friday, U.S. Steel and Nippon Steel criticized Biden’s decision, alleging that the White House manipulated the review process to further political agendas. Both companies vowed to take appropriate actions to protect their rights, asserting that the deal was the best way to keep steelmaking competitive, revitalize American industrial communities, and strengthen national security.
However, the United Steelworkers union has strongly opposed Nippon Steel’s bid since it was announced in December 2023. The union’s president, David McCall, labeled Nippon Steel a "trade cheat" and argued that allowing the acquisition would further disrupt U.S. trade systems and jeopardize national security and critical infrastructure.
Biden’s action reflects the U.S. government’s broader efforts to maintain domestic control of strategic industries amid escalating global geopolitical tensions. Former President Donald Trump also opposed the takeover.
The blocked sale underscores the growing protectionist sentiment in the U.S., even among close allies like Japan. This comes despite the U.S.-Japan alliance’s efforts to counterbalance China’s influence in the Indo-Pacific region.
