Outgoing US President Biden has blocked the proposed acquisition of US Steel by Nippon Steel. (Earlier post.)

A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains. That is because steel powers our country: our infrastructure, our auto industry, and our defense industrial base.

… We need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests. As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.

—Statement from President Biden

In a joint statement, Nippon Steel and US Steel condemned the decision to block the nearly $15-billion deal. Biden’s decision, said the two:

… reflects a clear violation of due process and the law governing CFIUS. Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda. The President’s statement and Order do not present any credible evidence of a national security issue, making clear that this was a political decision. Following President Biden’s decision, we are left with no choice but to take all appropriate action to protect our legal rights.

Nippon Steel is Japan’s largest steelmaker and one of the world’s leading steel manufacturers. NSC has a global crude steel production capacity of approximately 66 million tonnes and employs approximately 100,000 people worldwide. NSC’s manufacturing base is in Japan, and the company has a presence in 15 additional countries, including the United States, India, Thailand, Indonesia, Vietnam, Brazil, Mexico, Sweden, China, and others. NSC established a joint venture in the United States around 40 years ago.

Founded in 1901, US Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high-value-added steel products. The Company also maintains advanced iron ore production and has an annual raw steelmaking capability of 25.4 million net tons. US Steel is headquartered in Pittsburgh, Pennsylvania, with operations across the United States and in Central Europe.