President Joe Biden is set to announce the blocking of a $14.3 billion acquisition of US Steel by Japan's Nippon Steel, a move that showcases the significant use of executive authority in the final days of his administration. The decision, expected to be made public on Friday, has been a topic of discussion since it was first reported by the Washington Post and New York Times.
The deal, announced a year ago, has faced opposition from both Biden and President-elect Donald Trump. The concern revolves around foreign control of a crucial component of US industrial strength, with fears that blocking the deal could impact future foreign investments in American companies.
The Committee for Foreign Investment in the United States (CFIUS) recently informed Biden that it had not reached a consensus on whether the sale posed a national security risk, leaving the final decision to the president.
Biden emphasized the importance of maintaining strong American steel companies operated by American workers, stating that US Steel, an iconic American steel company, should remain domestically owned and operated.
The United Steelworkers union has been vocal in its opposition to the deal, citing concerns about job protection for unionized workers at older mills. Despite the opposition, US Steel and Nippon argue that the acquisition is necessary to provide essential investment in US Steel's domestic operations.
US Steel, once a symbol of American industrial prowess, has faced a decline over the years and is no longer the largest US steelmaker. The company, with 14,000 US employees, has been at the center of political discussions, particularly in Pennsylvania.
While the decision to block the deal may seem politically motivated, it raises questions about foreign investments in American companies. Trump's opposition to Nippon's purchase of US Steel contrasts with his welcoming of a $100 billion investment from Japan's Softbank, highlighting the complexities surrounding national security concerns in foreign acquisitions.
