Biden to block US-Japan steel deal

WASHINGTON/TOKYO — US President Joe Biden has decided to officially block Nippon Steel's proposed $14.9-billion purchase of US Steel, a person familiar with the decision said on Friday, putting an end to a long-running and contentious merger plan.

The Committee on Foreign Investment in the United States had previously referred the decision to approve or block the deal to Biden, who will leave office on Jan 20.

Biden's call to block the deal was taken despite contrary efforts by some senior advisers concerned that it could hurt US-Japan relations, according to The Washington Post, which first reported the news. It cited two administration officials who were not authorized to speak publicly about the matter.

US Steel directed Reuters to a statement earlier on Thursday, saying it hoped "Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances US national and economic security".

Nippon Steel paid a hefty premium to clinch the purchase of the steel giant in a December 2023 auction, but the deal faced opposition from the powerful United Steelworkers union, or USW, as well as politicians.

Biden has said he wants US Steel to be domestically owned and run, while President-elect Donald Trump has vowed to block the deal after he takes office in January.

The two companies had worked to assuage concerns over the merger. Nippon Steel offered to move its US headquarters to Pittsburgh, where the US steelmaker is based, and promised to honor all agreements in place between US Steel and USW.

Japanese Prime Minister Shigeru Ishiba urged Biden to approve the merger to avoid marring recent efforts to strengthen ties between the two key allies, Reuters reported in November.

Agencies Via Xinhua