A water tower at U.S. Steel’s Edgar Thomson Works steel plant in Braddock, Pennsylvania, on September 4, 2024.
Justin Merriman | Bloomberg | Getty Images
President Joe Biden formally blocks takeover on Friday United States Steel Corporation Japan’s Nippon Steel has made good on its promise to bring an industrial brand with more than a century of history under domestic ownership.
Biden said Japan Steel’s proposed $14.9 billion takeover would put one of the largest U.S. steel producers under foreign control, posing risks to critical U.S. supply chains.
“Today’s actions demonstrate my unwavering commitment to use all the powers I have as president to defend America’s national security, including ensuring that American companies continue to play a central role in areas critical to our national security,” Biden said. ” said in a statement.
Shares of U.S. Steel fell nearly 8% in premarket trading Friday following the president’s announcement.
Biden’s decision to scuttle the deal highlights a bipartisan shift toward protectionism in the United States, with both Democrats and Republicans seeking to maintain domestic control over key industries as global geopolitical tensions rise.
President-elect Donald Trump also opposes the deal.
Biden’s decision to block the deal shows that even staunch allies like Japan are not immune to the rising tide of protectionism. Tokyo is at the center of Washington’s efforts to curb China’s ambitions in the Indo-Pacific region.
U.S. Steel and Nippon Steel said the deal was the best way to keep their companies competitive, revitalize America’s Rust Belt communities and strengthen national security. U.S. Steel Chief Executive David Burritt had previously warned that the company could close the plant if the deal fell through.
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