“BOLD ACTION”
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 criticised the deal for months, while holding off on a move that could hurt ties with Tokyo.
“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 on Friday.
“That is why I am taking action to block this deal.”
The United Steelworkers union quickly welcomed the announcement, describing it as “bold action to maintain a strong domestic steel industry”.
But Nippon Steel and US Steel said the outcome reflected “a clear violation of due process and the law”.
Nippon Steel had 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.
The decision to block the deal enjoyed rare bipartisan agreement in Washington.
Republican President-elect Donald Trump and incoming vice president JD Vance have also campaigned against the sale.
Japanese industry minister Yoji Muto has described Biden’s decision as “incomprehensible”.
Source: CNA
