1 week Ago By Susan Scott Peterson, Associated Press
President Joe Biden has decided to block the acquisition of Pittsburgh-based U.S. Steel by the Japanese company Nippon Steel, according to a report by the New York Times .
The president's decision appears to be based on the grounds that the sale of U.S. Steel poses a threat to national security.
A powerful government committee failed to reach consensus on the possible risks of a deal in December, and left the decision to Biden. Biden is expected to make a formal announcement as early as today, according to a report by CBS News . The deal was also opposed by President-elect Donald Trump, Vice-President-elect J.
D. Vance, and U.S.
Senators John Fetterman and Bob Casey, and U.S. Senator-elect Dave McCormick.
Both Biden and Trump have courted unionized workers at U.S. Steel and vowed to block the acquisition amid concerns about foreign ownership of a flagship American company.
The economic risk, however, is giving up Nippon Steel's potential investments in the mills and upgrades that might help preserve steel production within the United States. Under the terms of the proposed $14.9 billion all-cash deal, U.
S. Steel would keep its name and its headquarters in Pittsburgh, where it was founded in 1901 by J.P.
Morgan and Andrew Carnegie. It would become a subsidiary of Nippon Steel, and the combined company would be among the top three steelmakers in the world, according to 2023 figures from the World Steel Association. Biden, backed by the United Steelworkers, said earlier this year that it was "vital for (U.
S. Steel) to remain an American steel company that is domestically owned and operated.” Trump has also opposed the acquisition and vowed earlier this month on his Truth Social platform to “block this deal from happening.
” He proposed reviving U.S. Steel's flagging fortunes “through a series of Tax Incentives and Tariffs.
”.
