Japan Prime Minister Shigeru Ishiba has raised concerns with US President Joe Biden regarding the recent order to block Nippon Steel's acquisition of U.S. Steel. In a virtual meeting also attended by Philippine President Ferdinand Marcos Jr., Ishiba emphasized the importance of addressing worries within the Japanese and US business communities.
The meeting, held on Monday, focused on economic security and cooperation in maritime security in the South China Sea, as reported by a spokesman from Japan's Ministry of Foreign Affairs. Ishiba highlighted the necessity of collaboration among allies and like-minded countries to establish resilient supply chains and ensure a conducive environment for companies to invest securely, thereby promoting economic security.
Specifically referencing the Nippon Steel-U.S. Steel deal, Ishiba's request comes in response to Biden's decision to halt the $14.9 billion acquisition on national security grounds earlier this year. The Biden administration has extended the deadline for Nippon Steel to abandon the bid until June, allowing time for legal review following lawsuits filed by both companies challenging the order.
Nippon Steel and US Steel remain committed to finalizing the deal, despite facing opposition from the United Steelworkers union and domestic steelmaker Cleveland-Cliffs. Federal lawsuits have been initiated against the government's intervention and the entities working against the acquisition.
