Metal Industry News

President Joe Biden has blocked the acquisition of U.S. Steel by Japanese steelmaker Nippon Steel, possibly ending the deal more than one year after it was first announced.

The matter was turned over to the president when the  Committee on Foreign Investment in the United States was unable to reach a consensus on the pending acquisition. 

U.S. Steel officials promised to fight the decision through legal channels.

"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," a release from U.S. Steel said.

"Nippon Steel and U.S. Steel are confident that our transaction would revitalize communities that rely on American steel, including in Pennsylvania and Indiana, provide job security for American steelworkers, enhance the American steel supply chain, help America’s domestic steel industry compete more effectively with China and bolster national security. Nippon Steel is the only partner both willing and able to make the necessary investments – including at least $1 billion to Mon Valley Works and approximately $300 million to Gary Works as a part of $2.7 billion in investment that it has already committed – to protect and grow U.S. Steel as an iconic American company for the benefit of the communities in which it operates and the entire American steel industry," the release continued. "Blocking this transaction means denying billions of committed investment to extend the life of U.S. Steel’s aging facilities and putting thousands of good-paying, family-sustaining union jobs at risk."

The decision was greeted positively by the United Steelworkers, which has rejected the potential deal from the outset. “The USW welcomes President Biden’s decision to block the U.S. Steel-Nippon deal. We have no doubt that it’s the right move for our members and our national security," a release from the USW said.

“Throughout the past year, as the proposed transaction was under review, our union’s first and only concern has been the long-term viability of our facilities as we look to ensure a strong domestic steel industry well into the future."

The deal, which was announced at the tail end of 2023, has been contested ever since, with U.S. Steel championing the move while the United Steelworkers have remained opposed. Many politicians from both sides of the aisle expressed opposition during the 2024 campaigns.