Biden Shuts Down U.S. Steel Sale, Insists on Domestic Ownership

In a decisive move early Friday, President Joe Biden announced he will block the proposed acquisition of U.S. Steel by the Japanese company Nippon Steel. This decision comes as one of the closing acts of his presidency.

Biden, having previously stated his belief that U.S. Steel should remain a domestically owned entity, did not indicate surprise with the order. The White House had previously called for “serious scrutiny” of the $14.1 billion deal, which was under review by the Committee on Foreign Investment in the United States.

“We need major U.S. companies representing a significant share of American steelmaking capacity to continue leading the fight for our national interests,” Biden emphasized in his Friday statement. He explained that the acquisition would put one of the largest American steel producers under foreign control, posing risks to national security and critical supply chains.

He elaborated, saying, “It is my solemn responsibility as President to ensure that, now and years to come, America maintains a strong domestically owned steel industry. U.S. Steel will remain a proud American company, operated by American workers, particularly those from unions.”

The sale, valued at approximately $14.9 billion factoring in assumed debt, faced opposition from the United Steelworkers International union. The union had persistently urged Biden to block the foreign acquisition, reinforcing this message just days prior via social media.

United Steelworkers President David McCall expressed gratitude in a Friday statement, affirming, “We firmly believe this is the right decision for our members and our national security.” He commended Biden’s dedication to sustaining the domestic steel industry.

In contrast, U.S. Steel and Nippon Steel expressed their disappointment at the decision. They pledged to take appropriate legal actions to protect their interests and argued that blocking the transaction jeopardizes significant investments aimed at enhancing U.S. facilities.

Their joint statement declared, “President Biden has sacrificed the future of American steelworkers for his own political agenda.” The companies criticized the evaluation process by CFIUS, labeling it as “deeply corrupted by politics” and suggesting it had predetermined outcomes.

Biden’s blocking of the sale was executed under the Defense Production Act, which empowers the President to intervene in industrial matters considered threats to national security. He reiterated the necessity of maintaining a robust steel industry as critical for safeguarding national interests.