The Committee on Foreign Investment in the United States (CFIUS) was unable to reach a consensus on whether to approve or reject Nippon Steel's acquisition of U.S. Steel, leaving the decision to President Biden. The deal had faced opposition from both Biden and his predecessor Donald Trump, who were courting union votes during the 2020 election won by Trump. Despite CFIUS' rare rejection of deals involving closely-allied countries like Japan, the panel submitted its analysis to the president, who made the final decision.
https://channelnewsasia.com/business/yellen-says-cfius-made-thorough-analysis-blocked-us-steel-nippon-steel-merger-4846226US Secretary of State Antony Blinken visited Tokyo as part of a farewell tour before President Biden leaves office and stated that the alliance between the US and Japan has grown stronger than ever before. The two countries are each other's largest investors, providing a solid foundation for their economic relationship. However, the visit was overshadowed by controversy surrounding Nippon Steel's bid to acquire U.S. Steel, which was rejected due to national security concerns. Japanese officials, including Foreign Minister Takeshi Iwaya and Trade Minister Yoji Muto, expressed disappointment with the decision, citing its potential impact on future investment between the two countries.
https://apnews.com/article/japan-us-steel-alliance-security-trade-6bdf99e861ac928c03b3b24c4d18cd65President Joe Biden has blocked a proposed $15 billion deal for Nippon Steel of Japan to purchase Pittsburgh-based U.S. Steel, citing concerns that it would create national security risks and potentially harm American interests. The decision was made after the Committee on Foreign Investment in the United States (CFIUS) failed to reach consensus on the matter last month. Nippon Steel and U.S. Steel have blasted the decision as a "clear violation of due process and the law" and threatened to sue, arguing that Biden's action will damage relations between the US and Japan. The deal had been opposed by some federal agencies, including those concerned about potential job losses and labor agreements.
https://www.boston25news.com/news/biden-blocks-14/ADB7NWNSUVGUTP4A3YY54KEZJA/President Joe Biden has blocked a proposed $14.9 billion acquisition of U.S. Steel by Nippon Steel, a Japanese company. This decision may strain relations with Japan, a key ally and trade partner of the US.
https://www.voanews.com/a/biden-blocks-japan-s-nippon-steel-from-buying-us-steel/7923740.htmlMcCall, a critic of Nippon Steel's bid to purchase U.S. Steel, has called the Japanese company a "serial trade cheater" that would undermine the US steel industry and national security if allowed to acquire U.S. Steel. McCall argues that the deal would give Nippon Steel an opportunity to destabilize the US trade system from within and compromise its ability to meet national security needs. In contrast, Nippon Steel has pledged to invest billions in US facilities, protect U.S. Steel in trade matters, and keep the company's Pittsburgh headquarters. The deal has raised concerns about unionized workers, supply chains, and national security, despite support from some conservatives and business groups.
https://www.ctvnews.ca/business/biden-blocks-14b-acquisition-of-u-s-steel-by-japan-s-nippon-steel-1.7163788Steelworkers President David McCall has expressed gratitude for President Biden's decision to block Nippon Steel's $14.9 billion purchase of U.S. Steel, calling it a "right move" that prioritizes national security and the union's interests. McCall had previously questioned Nippon Steel's commitment to fair trade practices, labeling them a "serial trade cheater." He argued that allowing the sale would have compromised U.S. national security and critical infrastructure needs. In contrast, Nippon Steel had pledged to invest billions in U.S. Steel facilities, protect its workers, and maintain its Pittsburgh headquarters. Despite this, concerns remained about the potential impact on unionized workers, supply chains, and national security.
https://apnews.com/article/nippon-steel-japan-cfius-economy-biden-099564a3cddca587af0d7340e0c15ed6Nippon Steel proposed a concession to the US government as part of its bid to acquire U.S. Steel, offering veto power over any potential production capacity cuts. This move is aimed at securing approval from President-elect Joe Biden, who has expressed a desire for U.S. Steel to remain domestically owned and operated. However, President-elect Donald Trump has stated his intention to block the deal when he takes office in January.
https://www.brecorder.com/news/40340877/biden-to-announce-decision-on-nippon-steel-bid-for-us-steel-as-early-as-friday-cbs-news-reportsNippon Steel's proposal to acquire U.S. Steel has raised concerns about its impact on unionized workers and national security. Despite this, the deal has garnered support from some conservatives and business groups, including the U.S. Chamber of Commerce. Nippon Steel has attempted to win over supporters by offering $5,000 bonuses to U.S. Steel employees and investing nearly $100 million in the deal. Former Secretary of State Mike Pompeo has publicly backed the proposal, stating that it would strengthen U.S. Steel's operations and enhance the competitiveness of the American steel industry. The deal is seen as a significant development in the context of renewed efforts to rebuild America's manufacturing sector, which has been bolstered by protectionist tariffs on domestic steel.
https://www.scrippsnews.com/us-news/biden-rejects-nippon-steels-proposed-deal-to-acquire-us-steelU.S. Steel's acquisition by Nippon Steel is seen as a strategic move to enhance US national and economic security through investment in manufacturing and innovation from a close ally. The deal aims to combat China's competitive threat in the steel industry, according to U.S. Steel officials. They argue that this transaction sets a positive precedent for "friendshoring" investments, ensuring the long-term success of U.S. Steel, its employees, communities, and customers.
https://www.upi.com/Top_News/US/2025/01/01/nippon-steel-us-steel-governmental-veto/4121735780682/