Biden Blocks $14 Billion U.S. Steel Takeover, Citing Security Concerns
President Biden has stopped a major $14 billion takeover of U.S. Steel by Japan’s Nippon Steel, claiming it could threaten national security. Even though the Committee of Foreign Investment in the United States never provided a formal recommendation, the president weighed in decisively to keep the historic steelmaker in American hands. U.S. Steel is deeply rooted in Pennsylvania—an influential swing state—fueling suspicions that the decision, while rooted in security arguments, also reflects election-year politics.
Although foreign investors are now wary, this move resonates with a wide range of stakeholders. While many of U.S. Steel’s workers believe fresh investment is overdue, the United Steelworkers union raised alarms that Nippon might fail to honor union contracts and worker pensions. Nippon, in contrast, had pledged to safeguard those agreements and funnel new resources into plants.
Critics argue that blocking the sale could strain U.S.-Japan relations and rattle foreign investors eyeing American firms in strategic industries. Yet Mr. Biden and other leaders, including President-elect Donald Trump, insist it’s about preserving a vital piece of national infrastructure. The future of U.S. Steel remains uncertain, with other prospective suitors potentially ready to step in.
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