Today's Edition
WASHINGTON (dpa)
US President Joe Biden on Friday blocked the planned takeover of US Steel by Japan's Nippon Steel on grounds of risks to national security and critical supply chains.
"We need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America's national interests," Biden said on Friday in a written statement from the White House issued just weeks before he leaves office.
The acquisition would have placed one of the country's largest steel producers under foreign control and created "risk for our national security and our critical supply chains," it said.
"US Steel will remain a proud American company - one that's American-owned, American-operated, by American union steelworkers - the best in the world," the statement said.
Nippon Steel, Japan's largest steelmaker, and US Steel announced plans for an unopposed takeover in December 2023, putting the value of the transaction at around $14.9 billion.
US union representatives came out against the plans, fearing the loss of jobs. They placed Biden under pressure as a major electoral group at a time when he was still seeking re-election.
Biden had earlier made known his reservations on the deal, which has the backing of the US Steel board, but waited before making his decision.
Biden leaves office on January 20, handing over to President-elect Donald Trump, who has announced that he would also have blocked the deal.
