US President Joe Biden has officially rejected Japan's Nippon Steel's US$14.9 billion bid to acquire US Steel, marking the end of a contentious merger proposal. The decision follows a recommendation from the Committee on Foreign Investment in the United States (CFIUS), which raised concerns over the deal's potential risks to national security.
According to The Washington Post, CFIUS submitted a report on Dec. 23, 2024, stating that the committee could not reach a consensus on the risks posed by the acquisition and deferred the final decision to the White House. The report warned that Nippon Steel's acquisition of US Steel could lead to reduced domestic steel production and pose a threat to US national security.
President Biden emphasized that the operations of US Steel should remain under American control, aligning with his administration's stance on safeguarding critical industries. President-elect Donald Trump had also vowed to block the deal upon taking office later this month. Despite Japanese Prime Minister Shigeru Ishiba urging Biden to approve the merger, the US-Japan business deal appears to have reached an impasse.
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