Biden Blocks Sale of US Steel to Japanese Company
The White House, with its announcement, has put an end to the possibility of creating a giant steel market player
One of Joe Biden’s last moves as President of the United States was to block the sale of steel producer US Steel to Japan’s Nippon Steel. The $14.9 billion operation was finally scrapped on January 3, as highlighted in a White House statement. The Japanese company has pledged to invest $3 billion in a US plant that has been in crisis for some time.
The long-awaited move cuts off an important source of capital for the Pennsylvania-based US company, which has been in trouble for so long that it says it will be forced to close key plants without a promised investment of nearly $3 billion from Japan. But the USA is convinced that a transfer of this type could pose national security risks: “Steel production and the workers who produce it are the backbone of our nation. Domestic industry represents a national priority and is critical to supply chain sustainability,” the White House said in a document released by the White House. “ The proposed acquisition of U.S. Steel (…) is prohibited, is prohibited, and any substantially similar transaction between the Purchasers and US Steel, whether effected directly or indirectly (…) is also prohibited.. The Purchasers and U.S. Steel shall take all steps necessary to fully and permanently abandon the Proposed Transaction no later than 30 days after the date of this order.”
It’s a decision that in recent weeks has also been supported by the Republican Party and President-elect Donald Trump, while Nippon Steel defined the role US policymakers have taken in the negotiations as “inappropriate,” explaining how inappropriate it is to continue a policy of overriding true national security interests, especially when the essential alliance between the United States and Japan forms an important basis for any agreement.
