Japanese steel giant Nippon Steel and US Steel have decided to take legal action against the US federal government, after President Joe Biden today blocked the acquisition of the latter by the first for 14.9 billion dollars. This is what we can read in a joint press release published by the two companies. “The President’s statement and order present no credible evidence of national security concerns, making clear that this was a political decision. Following President Biden’s decision, we have no choice but to take all appropriate measures to protect our legal rights,” the two companies said. In his statement blocking the deal, the White House chief said the acquisition “would place one of the nation’s largest steel producers under foreign control and create a risk to our national security and for our supply chains. .
The president of the United States, Joe Biden, blocked the sale of steel giant Us Steel to Japan’s Nippon Steel, scuttling a $14.1 billion deal over national security concerns. This was made official by a statement from the White House, after last December 23, after months spent evaluating the agreement, the Committee on Foreign Investment in the United States (CFIUS) informed the president that it failed to reach an agreement. an agreement on the possibility of recommending the operation.
The deal, which initially received favorable approval from US regulators, had been the subject of political tension for months coinciding with last November’s elections. Biden chose to cancel the deal despite intense and repeated attempts by some of his advisers to persuade him to give the green light, fearing damage to relations between the United States and its main Asian ally.
Biden’s decision follows a Dec. 23 report from the interagency committee reviewing foreign investment in the United States for possible national security concerns.
The Committee on Foreign Investment in the United States (CFIUS) failed to reach consensus on the risks of the Nippon Steel deal and left the final decision to the White House. However, in its final assessment of the transaction, the committee warned that after purchasing US Steel, Nippon Steel could reduce its domestic steel production, creating “risks to the national security of the United States.” “A potential reduction in US Steel production could result in supply shortages and delays that could impact sectors critical to national security,” the committee warned.
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