Biden Blocks U.S. Steel Takeover by Japan’s Nippon Steel, Citing National Security Concerns

Biden Blocks U.S. Steel Takeover by Japan’s Nippon Steel, Citing National Security Concerns

Key Points:

President Joe Biden has halted Nippon Steel’s $14.9 billion bid to acquire U.S. Steel.

The decision stems from concerns over national security and risks to critical supply chains.

U.S. Steel’s stock dropped over 7% in premarket trading following the announcement.

President Joe Biden officially blocked Japan’s Nippon Steel from acquiring U.S. Steel on Friday, citing national security concerns. 

The $14.9 billion deal, which would have placed one of America’s largest steel producers under foreign control, was deemed a potential threat to vital supply chains.

“This decision reflects my unwavering commitment to using all presidential powers to safeguard U.S. national security, ensuring American companies remain central to critical industries,” Biden stated.

The Committee on Foreign Investment in the United States (CFIUS) conducted a months-long review of the proposal, concluding with Biden’s decision. The United Steelworkers union had been vocal in opposing the deal since its announcement in December 2023, citing risks to domestic jobs and industry control. Biden had signaled his opposition to the acquisition as early as March 2024, aligning with the union’s stance.

The blocked sale highlights growing bipartisan protectionism in the U.S., with both Democrats and Republicans aiming to keep strategic industries under domestic ownership amid rising geopolitical tensions. Even President-elect Donald Trump voiced opposition to the deal.

While Nippon Steel and U.S. Steel argued that the acquisition would boost competitiveness, support rust belt communities, and enhance national security, Biden’s decision sends a clear message that foreign control of key industries—even by allies like Japan—will face heightened scrutiny.

U.S. Steel CEO David Burritt had previously warned that failing to finalize the deal might lead to plant closures, adding further uncertainty to the company’s future.