Biden Administration Blocks Nippon Steel's Acquisition of U.S. Steel on National Security Grounds

The Biden administration has expressed concerns over Nippon Steel's $14.9 billion bid to acquire U.S. Steel, citing national security risks and the potential harm to the American steel industry. Both Democrats and Republicans oppose the deal, and companies have been given until Wednesday to respond to these concerns.

The Biden administration has signaled plans to block Nippon Steel's $14.9 billion acquisition of U.S. Steel, citing national security concerns over the deal's potential impact on the American steel industry, according to sources.

The Committee on Foreign Investment in the United States (CFIUS) emphasized that the acquisition poses risks to the U.S. steel sector, urging a response from the involved companies by Wednesday. Notably, Vice President Kamala Harris and former President Donald Trump have both voiced opposition to the deal.

In their response to CFIUS, U.S. Steel reiterated that blocking the transaction could lead to job losses and weaken the steel supply chain. While the White House and Treasury Department have declined to comment, both Nippon Steel and U.S. Steel maintain that the deal does not present any national security threats.

(With inputs from agencies.)