Biden to block US steel sales to Japanese buyer, Washington Post says Via Reuters

WASHINGTON/TOKYO (Reuters) – U.S. President Joe Biden has decided to formally block Nippon Steel’s $14.9-billion acquisition of US Steel, the Washington Post reported, ending a long-standing policy long and controversial.

The Committee on Foreign Investment in the United States (CFIUS) previously referred the decision to approve or block the deal to Biden, who will leave office on January 20.

Biden’s call to block the deal was taken despite efforts by other senior advisers who are concerned it could damage US-Japan relations, the paper said.

It cited two administration officials who were not authorized to speak publicly on the matter.

A White House spokesman declined to comment on the report. A source told Reuters Biden’s decision is expected as soon as Friday. A spokesman for Nippon Steel declined to comment on the report.

US Steel told Reuters in a statement earlier Thursday that it hoped “Biden will do the right thing and follow the law by accepting a deal that clearly improves national security and the US economy.”

Nippon paid too much to accept the purchase of the No.2 US steelmaker in the December 2023 auction, but the deal faced opposition from the powerful United Steelworkers Union (USW), as well as politicians.

Biden has said he wants US Steel owned and operated, while President-elect Donald Trump has vowed to block the deal after taking office in January.

Despite opposition, US Steel shareholders voted overwhelmingly to approve the takeover last April.

The two companies also worked to ease concerns about the merger. Nippon has offered to move its US headquarters to Pittsburgh, where the US steelmaker is based and has promised to honor all existing agreements between US Steel and USW.

This week, a source familiar with the matter said Nippon Steel has proposed giving the US government veto power over US Steel production cuts, as part of an effort to win Biden’s approval.

Japanese Prime Minister Shigeru Ishiba urged Biden to accept the meeting to avoid damaging recent efforts to strengthen ties between the two key allies, Reuters reported in November.

Japan’s stock market is closed for a holiday on Friday. Shares of US Steel closed down 4.1% on Thursday.

METI, Japan’s industry ministry, and a spokesman for Ishiba could not be reached for comment because of the holiday.