US President Joe Biden has decided to block the proposed $14.9 billion acquisition of US Steel by Japan’s Nippon Steel, according to sources close to the administration.
The Washington Post reported on Thursday that a formal announcement of the presidential decision is expected as soon as Friday, unless Biden has a last-minute change of heart, which officials do not foresee.
Despite pressure from senior advisers who cautioned that blocking such a significant investment could harm relations with Japan, Biden is poised to reject the deal.
The transaction was brought to Biden after the Committee on Foreign Investment in the United States (CFIUS) was unable to reach a consensus in late December on whether the acquisition posed a national security risk.
Biden has voiced opposition to the deal for several months, aligning with critics, including President-elect Donald Trump and incoming Vice President JD Vance, who have condemned the acquisition.
The controversy intensified when the deal became a focal point in the 2024 US presidential campaign, especially in Pennsylvania, where the steelworkers’ union strongly opposed it.
While Nippon Steel has argued that the acquisition could revive Pennsylvania’s struggling steel industry, US Steel and Nippon Steel have signalled plans to pursue legal action against the government, accusing it of not adhering to proper procedures during the review process.
There was no immediate comment from the White House on Thursday evening.
