(AFP) – US President Joe Biden has decided to block the proposed $14.9 billion purchase of US Steel by Japan’s Nippon Steel and will announce the move as soon as Friday, according to US media. A White House announcement of the presidential finding is being planned unless Biden has a last-minute change of heart, according to the Washington Post and the New York Times.
Biden decided to block the deal despite intense efforts to sway him in recent days by some of his senior advisors, who warned that rejecting a sizable investment from a top Japanese corporation could damage Washington’s relations with Tokyo, the Post reported. There was no immediate comment on the reports from the White House late Thursday evening, and Nippon Steel declined to comment when contacted by AFP.
The decision was left with Biden after a US government panel failed to reach a consensus in late December on whether US Steel’s acquisition by Nippon Steel threatens Washington’s national security. The controversial transaction was referred to Biden, who was legally required to act within a 15-day deadline, after the deadlock by the Committee on Foreign Investment in the United States (CFIUS).
Biden has criticized the deal for months, joining a loud consensus of US power players who have slammed the transaction. They include President-elect Donald Trump and the incoming vice president, JD Vance. The deal became caught up in the 2024 US presidential campaign when Pennsylvania emerged as a critical swing state and leaders of the United Steelworkers union loudly opposed the transaction.
Nippon Steel has described the transaction as a lifeline to Pennsylvania’s much-diminished steel industry. The Japanese company and US Steel have vowed to pursue legal action against the government, claiming it failed to follow proper procedures during its consideration of the acquisition.
© 2024 AFP
