President Biden blocks U.S. Steel sale to Nippon

Citing national security concerns, President Joe Biden has blocked the sale of U.S. Steel to Japanese-based Nippon Steel Corporation. The $15 billion deal, more than a year in the making, was halted by the president on Friday (Jan. 3).

“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a released statement.

Both U.S. Steel and Nippon immediately threatened legal action. In a jointly released statement, the two steel manufacturers said there is no threat to national security and this was a politically motivated move.

“We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of U. S. Steel, which reflects a clear violation of due process and the law governing CFIUS. Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda. The president’s statement and order do not present any credible evidence of a national security issue, making clear that this was a political decision. Following President Biden’s decision, we are left with no choice but to take all appropriate action to protect our legal rights,” the companies stated.

Nippon Steel Corp. is Japan’s largest steelmaker and one of the world’s leading steel manufacturers. The transaction was first announced a year ago.

U.S. Steel owns Big River Steel in Mississippi County and is building a second steel mill on its property.

How this will impact operations in Arkansas was not immediately known. Mississippi County is the largest steel-producing county in the U.S.