by George Jared (gjared@talkbusiness.net)

Citing national security concerns, President Joe Biden has blocked the sale of U.S. Steel to Japanese-based Nippon Steel Corporation. The $15 billion deal, more than a year in the making, was halted by the president on Friday (Jan. 3).

“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a released statement.

Both U.S. Steel and Nippon immediately threatened legal action. In a jointly released statement, the two steel manufacturers said there is no threat to national security and this was a politically motivated move.

President Biden blocks U.S. Steel sale to Nippon

by Talk Business & Politics staff (staff2@talkbusiness.net)

U.S. Steel, which owns Big River Steel and other operations in Northeast Arkansas, is being acquired by Tokyo-based Nippon Steel Corp. in a $14.1 billion deal, the companies announced Monday (Dec. 18).

Nippon will pay $55 per share in an all-cash transaction, a 40% premium, for U.S. Steel. The companies said in a joint press release that U.S. Steel will retain its iconic name and headquarters in Pittsburgh.

Nippon Steel Corp. (NSC) is Japan’s largest steelmaker and one of the world’s leading steel manufacturers. The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the third quarter of 2024.

U.S. Steel to be acquired in $14 billion deal