Biden decides to block U.S. Steel sale to Japanese buyer
Source: Washington Post
President Joe Biden has decided to officially block Nippon Steel’s proposed purchase of U.S. Steel, a once-iconic American company whose sale to a foreign buyer he publicly opposed for months, according to two administration officials who were not authorized to speak publicly about the matter.
Barring an unforeseen change of heart, which the officials do not expect, a White House announcement of the presidential finding is planned as soon as Friday.
Biden opted to kill the deal despite intense efforts by some of his senior advisers to sway him in recent days, who warned that rejecting a sizable investment from a top Japanese corporation could damage U.S. relations with Japan.
Nippon Steel and U.S. Steel have vowed to pursue legal action against the government, claiming it failed to follow proper procedures during its consideration of the acquisition.
Read more: https://www.washingtonpost.com/business/2025/01/02/biden-blocks-nippon-us-steel-deal/
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The president’s announcement of the fate of the iconic Pennsylvania-based company, which became a contentious political issue in an election year, is expected as soon as Friday.
U.S. Steel, the iconic American company whose metal has been used to build some of the nation’s most famous bridges and buildings, is based in the swing state of Pennsylvania. Kyodo, via Associated Press
By Alan Rappeport
Reporting from Washington
Jan. 3, 2025, 12:26 a.m. ET
President Biden has decided to block the $14 billion takeover of U.S. Steel by Nippon Steel of Japan in an announcement expected as soon as Friday based on grounds that the sale poses a threat to national security, according to people familiar with the matter.
The decision would be an extraordinary use of executive power, particularly for a president who is just weeks from leaving office. It is also a departure from America’s long-established culture of open investment, one that could have wide-ranging implications for the U.S. economy.
Mr. Biden’s move to stop the transaction could cause foreign investors to rethink the wisdom of acquiring American firms in sensitive industries that are based in politically important states. It could also roil relations with Japan, a close ally of the United States and one of America’s largest sources of foreign investment.
The president’s decision to block the deal came after a federal committee reviewing the transaction opted to not make a formal recommendation about whether the takeover should be allowed to proceed, according to letters sent to the companies and the White House last month.
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Alan Rappeport is an economic policy reporter, based in Washington. He covers the Treasury Department and writes about taxes, trade and fiscal matters. More about Alan Rappeport
"Presidents of Japanese blue-chip companies are paid only around 10-20 times the salary of the lowest paid worker, whereas at Fortune 500 CEO can earn anywhere from 300-500 times a junior employee’s salary."
Source:
https://japanintercultural.com/free-resources/articles/japanese-acquire-western-company-compensation/
US and Japan are military and economic allies facing a powerful Chinese military and economy.
