News Brief
Biden Administration Set To Block $14.9 Billion US Steel Takeover By Quad Ally Japan’s Nippon Steel Citing ‘National Security’ Risks
US President Joe Biden
The Biden administration is poised to block the $14.9 billion acquisition of US Steel by Japan’s Nippon Steel, citing national security concerns that could not be mitigated.
The decision, expected in the coming days, comes amid increasing political focus on the steel industry in the United States, especially as the 2024 presidential election draws nearer.
The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign deals for potential security threats, recently informed Nippon Steel that the acquisition posed national security concerns that could not be overcome, Financial Times reported citing sources.
The Biden administration previously described Nippon’s proposed acquisition as a security risk, which many foreign policy experts, and some administration officials in private, have ridiculed, the FT reported.
Japan is the most crucial American ally in the Indo-Pacific and has been working very closely with Washington on a range of efforts, including Quad, to counter China.
The US Steel is headquartered in Pennsylvania, and both Democratic presidential candidate Kamala Harris and Republican candidate Donald Trump have positioned themselves against the deal
US Steel has warned that thousands of jobs in Pennsylvania could be at risk if the acquisition fails to proceed.
The White House has yet to make an official announcement, but an official cited in the FT reported indicated that a final recommendation, the next step in the proces, from CFIUS is still pending.
