America blocks $14.9bn sale of US Steel to Nippon Steel [Japan]

Nippon Steel attempted to purchase US Steel

Joe Biden, President of the United States of America, has blocked the sale of US Steel to Japanese company Nippon Steel in a $14.9 billion deal, according to multiple records.

The move by Biden fulfils his political promise to Americans, however there has been concerns that the move could hurt Washington’s relationship with Tokyo.

In the heat of the 2024 US Presidential Elections campaign, American Steelworkers Union pressured the political system to intervene in the ongoing transaction and block the sale.

Both Nippon Steel and US Steel had threatened to sue the American government if the deal does not happen and have now issued a statement indicating that they will take appropriate action to protect their legal rights.

Close to a year ago, Nippon Steel announced a $14.9 billion offer to takeover the Pennsylvania-based company.

Nippon Steel is the world’s fourth largest steel manufacturer.

US Steel spent several months looking for new buyers before Nippon Steel came through in December 2023.