8mbets

This photo shows signage on the exterior of a blast furnace building during a media tour by Japanese company Nippon Steel at their East Nippon Works Kashima Area facility in Kashima, Ibaraki prefecture, north of Tokyo on December 6, 2024. – US President Joe Biden on January 3, 2025, announced he has blocked the controversial $14.9 billion sale of US Steel to Japan’s Nippon Steel, citing a strategic need to protect domestic industry. (Photo by Richard A. Brooks / AFP)

WASHINGTON, United States — US Steel and Nippon Steel threatened legal action Friday after President Joe Biden blocked a controversial $14.9 billion deal for the Japanese company to buy its American rival.

Biden cited a strategic need to protect domestic industry — but the move drew sharp criticism from both companies.

Article continues after this advertisement

The decision came after a government panel failed to reach consensus last month on whether the acquisition threatened US national security, shifting the decision to the veteran Democrat in the waning days of his presidency.

FEATURED STORIES GLOBALNATION Pet dog to be rehomed after losing 9 family members in Jeju Air crash GLOBALNATION Judge to sentence Trump before inauguration in hush money case GLOBALNATION Soldier who died in Vegas blast: It's a wakeup call for country's ills

The move nevertheless enjoyed rare bipartisan agreement, with Republican President-elect Donald Trump and incoming vice president JD Vance also campaigning against the sale.

“This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains,” Biden said in a statement.

Article continues after this advertisement

“That is why I am taking action to block this deal.”

Article continues after this advertisement

The United Steelworkers union quickly welcomed the announcement.

Article continues after this advertisement

“We’re grateful for President Biden’s willingness to take bold action to maintain a strong domestic steel industry and for his lifelong commitment to American workers,” USW International President David McCall said.

‘Political decision’

Nippon Steel and US Steel expressed disappointment with the outcome, saying it “reflects a clear violation of due process and the law.”

Article continues after this advertisement

“The president’s statement and order do not present any credible evidence of a national security issue, making clear that this was a political decision,” the companies said in a joint statement.

They added that they would “take all appropriate action” to protect their legal rights.

The companies said they had transparently engaged with the Committee on Foreign Investment in the United States (CFIUS), which was reviewing the deal.

But they alleged that the “process was deeply corrupted by politics,” claiming the outcome had been “predetermined.”

“Unfortunately, it sends a chilling message to any company based in a US-allied country contemplating significant investment in the United States,” the statement said.

“This is not about Japan,” White House Press Secretary Karine Jean-Pierre told reporters, saying Biden has strengthened ties with allies during his term.

“We have been in touch with Japan and conveyed our thoughts directly to them,” she added.

US Steel’s shares slumped 6.5 percent on Friday.

Japan’s industry minister Yoji Muto said: “It is incomprehensible and regrettable that the Biden administration has made this kind of decision, citing national security concerns.”

120 free spins for real money

“The Japanese government has no choice but to regard this seriously,” he said in a statement sent to AFP on Saturday.

‘Level the playing field’

Biden’s decision, less than three weeks before he leaves office, followed extended wrangling over competing domestic political, economic, and trade demands.

The outgoing president, who made the rebuilding of the US manufacturing base a major goal of his administration, had criticized the deal for months while holding off on a move that could hurt ties with Tokyo.

Arthaland on Thursday said the capital infusion would be done via its subscription to 180,000 of the unissued preferred shares of Bhavya Properties Inc. for P100 each.

The firm hopes to secure provisional authority to make its business up and running while the ERC’s virtual hearing on its application is in progress, according to the document posted on the regulator’s website on Wednesday, October 2.

Nippon Steel touted the takeover as a lifeline for a US company that is long past its heyday, but opponents warned that the Japanese owners would slash jobs.

Nippon Steel attempted to calm nerves by pledging a pause on any layoffs or closures of unionized facilities for the duration of the current union contract, which expires in 2026.

But McCall warned Friday that allowing Nippon Steel to purchase US Steel would have “offered it the opportunity to further destabilize our trade system from within.”

Political intrigue over the deal intensified during the November presidential election, in which Pennsylvania — the home of US Steel — was a critical swing state, giving USW union leaders added influence.

The decision was left with Biden after CFIUS reached a deadlock on the transaction.

Biden, echoing Trump’s own trade policies, blamed unfair foreign trade practices for the decline of US steel. He said his mixture of protectionism and subsidies had helped revive the industry.

“I have taken decisive action to level the playing field for American steelworkers and steel producers by tripling tariffs on steel imports from China,” Biden said Friday.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

“A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains8mbets,” he added.

READ NEXT Myanmar junta to release nearly 6,000 prisoners in annual amnesty Taiwan: China redoubling disinformation efforts to undermine d... EDITORS' PICK DOH: No confirmed ‘international health concern’ Cloudy Saturday, rain showers in parts of Luzon LeBron James breaks Michael Jordan’s NBA record for 30-point games BuCor seeks NBI, PNP  probe of jail stabbings 61-year-old Fil-Am beauty crowned Mrs. Grand International Red Cross to deploy 500 volunteers, staff for Traslacion 2025 MOST READ Cebu mayor challenges Comelec disqualification ruling 4 best business ideas in 2025 Legarda urges strict implementation of new PhilHealth case rates NBA: Heat suspend Jimmy Butler for 7 games, seek to trade him Follow @FMangosingINQ on Twitter --> View comments