The current White House occupant argued that this decision reflects his "solemn responsibility" as president to ensure that the United States has a strong steel industry of its own.
Outgoing US President Joe Biden has decided to block, for national security reasons, the acquisition of United States Steel Corporation (US Steel) by Japanese steelmaker Nippon Steel Corporation in a transaction valued at nearly US$15 billion (14.536 billion euros).
The current White House occupant, who will be replaced by Donald Trump on January 20, has argued that the order to block this agreement reflects his "solemn responsibility" as president to ensure that the United States has a strong steel industry of its own.
Thus, in fulfilling that responsibility, the decision to block the transaction will allow US Steel to remain a "proudly American" company, American-owned and operated by unionized American steelworkers.
"Today's action reflects my unwavering commitment to use all authorities at my disposal as president to defend America's national security," Biden said, stressing the importance of ensuring that American companies continue to play a central role in sectors that are critical to national security.
"I will never hesitate to act to protect the security of this nation and its infrastructure, as well as the resilience of its supply chains," he added.
The decision on the purchase of US Steel by Nippon Steel was forwarded to the US president on December 23 by the Committee on Foreign Investment in the United States (CFIUS). Biden was thus required to adopt a resolution within 15 days of the referral of the case in what is likely to be one of his last major decisions as president.
The Japanese steelmaker had announced last week an extension of the deadline for closing the transaction to the first quarter of 2025 from the previous target date of the third or fourth quarter of 2024, expressing confidence that the US president would make a fair and fact-based assessment of the acquisition, also recalling the significant investments planned in US Steel's facilities and personnel.
The deal, which was backed by US Steel shareholders in April, also faced opposition from President-elect Donald Trump, who had expressed willingness to protect the Pittsburgh-based company with tariffs and tax incentives.
