Biden decides to block U.S. Steel sale to Japanese buyer

[mahatmakanejeeves]

8. From the NYT:

Biden Plans to Block Takeover Bid of U.S. Steel by Japan’s Nippon

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