Biden Administration Poised to Halt Nippon Steel Acquisition Over Security Concerns

President Joe Biden plans to block Nippon Steel's proposed acquisition of U.S. Steel on national security grounds. The $15 billion deal, facing opposition since last year, is under review by a U.S. security panel. Nippon Steel has pledged commitments to assuage concerns, including employee bonuses if the merger succeeds.

In a significant move, President Joe Biden is set to block the acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns. The $15 billion deal is under scrutiny by a U.S. national security panel, which must report to Biden by December 22 or 23, Bloomberg News has revealed.

The planned acquisition has faced backlash since its announcement, with both Biden and former president Donald Trump expressing intentions to oppose it. Concerns center on the potential impact on critical infrastructure sectors like transportation and agriculture. The Committee on Foreign Investment in the United States has emphasized these risks.

Despite the resistance, Nippon Steel is striving to push the deal forward by promising not to move production capacities outside the U.S. and offering significant financial bonuses to employees. However, tensions remain high, with both companies prepared to engage in legal battles if the deal is obstructed.

(With inputs from agencies.)