Biden Set to Block Nippon-U.S. Steel Merger: A High-Stakes Economic Standoff

President Joe Biden is preparing to block the proposed $14.9-billion acquisition of U.S. Steel by Nippon Steel, citing national security risks after a lengthy review by the Committee on Foreign Investment in the U.S. The decision could affect relations with Japan, a major U.S. ally.

U.S. President Joe Biden is on the verge of rejecting Nippon Steel's $14.9-billion bid to acquire U.S. Steel, potentially ending the contentious merger plan. The Committee on Foreign Investment in the United States referred the decision to Biden after reviewing national security implications.

Biden's decision might come soon, despite senior advisers warning of potential diplomatic fallout with Japan, a key Asian ally. U.S. Steel shares fell 7.8% in pre-market trading after reports of the impending rejection, while Japan's market remained closed for a public holiday.

Nippon Steel has offered concessions, including proposed relocation of its U.S. headquarters and giving veto power to the U.S. government over production cuts. The company could face penalties and a strategic overhaul if the deal collapses.

(With inputs from agencies.)