Biden blocks the purchase of the oldest steel company by the Japanese Nippon Steel for national security reasons

The still tenant of the White House, who will be relieved by Donald Trump on January 20, has defended that the order to block this agreement reflects his “solemn responsibility” as president to ensure that the United States has a strong own steel industry.

Thus, in fulfilling that responsibility, the decision to block the transaction will allow US Steel to remain a “proudly American” company, American owned and operated. unionized American steelworkers.

“Today’s action reflects my unwavering commitment to use all authorities at my disposal as president to defend the national security of the United States,” Biden said, underscoring the importance of ensuring that American companies continue to play a role. central role in sectors that are critical to national security.

“I will never hesitate to act to protect the security of this nation and its infrastructure, as well as the resilience of its supply chains,” he added. The decision on the purchase of US Steel by Nippon Steel was conveyed to the US president on December 23 by the Committee on Foreign Investment in the United States (CFIUS). In this way, Biden had to adopt a resolution within 15 days of case referral in what is probably one of his last big decisions as president.

The Japanese steelmaker had announced last week a extension of the deadline to close the transaction until the first quarter of 2025 from the previous indicative date of the third or fourth quarter of 2024, then expressing confidence that the US president would carry out a fair and fact-based assessment of the acquisition, also recalling the significant investments planned in the facilities and US Steel staff.

The agreement, which was backed in April by US Steel shareholders, also had the opposition from President-elect Donald Trumpwho had been willing to protect the Pittsburgh-based company through tariffs and tax incentives.