US President Joe Biden has decided to officially block Nippon Steel's proposed $14.9-billion purchase of US Steel, a person familiar with the decision has said, putting an end to months-long negotiations and sector-wide debate.
The Committee on Foreign Investment in the United States (CFIUS) had previously referred the decision to approve or block the deal to Biden, who will leave office on the 20th January.
Biden's call to block the deal came despite contrary efforts by some senior advisers concerned it could hurt US-Japan relations, according to the Washington Post, which first reported the news.
Nippon first made its bid for the purchase of the second largest US steel producer in a December 2023 auction, but the deal faced opposition from the United Steelworkers union (USW), as well as a number of politicians, despite assurances from the Japanese steelmaker that it would honour all agreements in place between the union and US Steel.
Critics of the deal have cited national security risks, as well as economic security.
Japanese prime minister Shigeru Ishiba in November wrote to Biden asking him to approve the deal to avoid damage to ties between the sides, the Reuters news agency reported, citing people familiar with the matter.
Source: Reuters/ The Washington Post