US Blocks Nippon Steel’s $14.9 Billion Bid for U.S. Steel
President Biden halts Nippon Steel’s acquisition of U.S. Steel, citing national security concerns and potential risks to American jobs.
Nippon Steel, U.S. Steel, Washington, Joe Biden, National Security, Investment
Washington: So, here’s the scoop. President Biden just blocked Nippon Steel’s big $14.9 billion deal to buy U.S. Steel. He’s worried it could mess with national security. You know, the usual concerns about keeping American jobs safe.
This decision was kind of expected. U.S. Steel really needed that cash injection to keep its mills running. Without it, they might have to shut down some key operations. That’s a big deal for a company that’s been around forever.
The whole thing went through a national security review by a group called CFIUS. They were supposed to give the green light or extend the review by December 23. But it looks like they decided to play it safe and recommend Biden block the deal instead.
Both Biden and Trump had their eyes on this deal since it was announced last year. They were trying to win over union voters in Pennsylvania, where U.S. Steel is based. They both felt that the company should stay American-owned, which makes sense given the political climate.
Initially, it seemed like the deal might go through after Nippon Steel got a 90-day extension for review. But then, in December, CFIUS raised some serious red flags about national security risks. That pretty much sealed the deal for Biden to step in and block it.