Washington. The president of the United States, Joe Biden, blocked the controversial sale for 14.9 billion dollars of the steel company US Steel to the Japanese Nippon Steel, due to the strategic need to protect that industry.
This acquisition would have placed one of America’s largest steel producers under foreign control, creating a risk to our national security and supply chain. That is why I have decided to block the operation
Biden said in a statement.
The United States is the world’s leading importer of steel, a sector mainly dominated by China.
Biden, a great defender of American reindustrialization, has made efforts to strengthen his country’s international alliances, particularly in Asia and specifically in Japan, considered a strategic ally in the region.
A panel in charge of evaluating the consequences for United States national security of a possible sale of the steel company refused to rule at the end of December, so the decision fell to the president, who had 15 days to do so.
According to the US press, his advisors had warned him of the possible diplomatic consequences of this blockade. Japan is Washington’s biggest ally in Asia and the largest foreign holder of US debt.
But on the issue of steel, he has chosen to put internal considerations first. In 2021 he also did not hesitate to provoke a crisis with France by stealing a gigantic submarine contract from Australia.
On January 20, Biden must hand over the presidency to Republican Donald Trump, who had also spoken out against that merger announced in December 2023.
The merger project was at the center of last year’s presidential campaign, given that it directly affects the state of Pennsylvania, the cradle of the United States steel industry and key to the elections.
The United Steelworkers union had strongly opposed the merger, which Nippon Steel described as a real lifeline for a struggling industry sector. Is the right decision
said the union’s international president, David McCall, in a statement.
The markets reacted negatively to the White House announcement, and US Steel’s price fell 5.20 percent on Wall Street.
Companies from both countries reject the decision
In a joint statement, Nippon Steel and US Steel denounced the decision, calling it clear violation of due process and the law
.
The Japanese group tried to overcome Biden’s reluctance by promising guarantees and tempting conditions, such as vetoing any possible reduction in US Steel production in the United States, maintaining jobs and a $2.7 billion investment in unionized industrial centers, as well as a bonus of 5 thousand dollars for US Steel employees in the event of an acquisition.
The US steelmaker also campaigned for the acquisition, which it described as a form of combat the competitive threat from China
and ensure its future prosperity.