Biden's Block on Nippon Steel Deal Sparks U.S. National Security Debate

U.S. President Joe Biden blocked Nippon Steel's proposed $14.9 billion purchase of U.S. Steel, citing national security concerns. The decision, influenced by political opposition and potential risks to domestic steel production, dissuades international investors ahead of the U.S. presidential election.

In a bold move underscoring national security priorities, President Joe Biden has halted Nippon Steel's $14.9 billion bid to acquire U.S. Steel. The decision, influenced by concerns over domestic production stability, was announced after extensive review and opposition from both major political parties.

The failed merger, initially announced in December, promised to bolster Nippon Steel's global capacity but faced resistance over fears of foreign control. Political leaders, including both Biden and Trump during their campaigns, pledged to protect U.S. Steel, citing its historical significance and economic impact.

Despite concessions from Nippon Steel, including proposals to relocate its U.S. headquarters and empower domestic veto rights over production changes, the deal's rejection casts doubt on future foreign investments in sensitive U.S. sectors. Analysts suggest alternative buyers like Cleveland-Cliffs may now come forward.

(With inputs from agencies.)