Nippon Steel on Wednesday slammed the “inappropriate” role of politics after Bloomberg News reported that President Joe Biden would block its planned takeover of US Steel.
The deal worth $14.9 billion including debts is being reviewed by a body that audits foreign takeovers of US firms, helmed by Treasury Secretary Janet Yellen.
Bloomberg cited people close to the matter as saying Biden planned to block the sale on national security grounds when the audit is finished later this month.
“It is inappropriate that politics continue to outweigh true national security interests — especially with the indispensable alliance between the US and Japan as the important foundation,” a Nippon Steel statement said.
“We have engaged in good faith with all parties to underscore how the transaction will bolster American economic and national security by countering the threats posed by China,” it added.
“Nippon Steel still has confidence in the justice and fairness of America and its legal system, and — if necessary — will work with US Steel to consider and take all available measures to reach a fair conclusion.”
Embattled US Steel argues that it needs the Nippon deal to ensure sufficient investment in its Mon Valley plants in Pennsylvania, which it says it may have to shutter if the sale is blocked.
But Biden has previously expressed opposition to the takeover, which President-elect Donald Trump — who will be inaugurated on January 20 — has also said he would block.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote on his Truth Social platform earlier in December.
“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening.”
In reaction to the Bloomberg report, White House spokesperson Robyn Patterson said Biden would wait and see what the ongoing review of the deal by the Committee on Foreign Investment in the United States (CFIUS) yields.
“The president’s position since the beginning is that it is vital for US steel to be domestically owned and operated,” Patterson said.
“We have not received any CFIUS recommendation. The CFIUS process was and remains ongoing.”
US Steel shares closed down 9.7 percent Tuesday on Wall Street following the report. Nippon was down 0.1 percent in Tokyo on Wednesday.
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