President Joe Biden plans to formally prevent Nippon Steel Corp.’s $14.1 billion acquisition of United States Steel Corporation (NYSE:X), citing national security concerns, according to a report by Bloomberg.
The proposed deal, announced last December, faced strong opposition from stakeholders, including the United Steelworkers union and President Biden, who had pledged to ensure US Steel remains under American ownership.
Following the news, shares of US Steel dropped 17.8% before being halted on Tuesday afternoon.
Nippon Steel, the world’s fourth-largest steel producer, had positioned the acquisition as a strategic expansion into the US market. Vice Chair Takahiro Mori expressed optimism last month, stating confidence that the deal could close before any changes in US leadership.
However, the Biden administration’s move aligns with earlier objections from the United Steelworkers union, which emphasized the need to protect domestic jobs and prevent critical industries from falling under foreign control.
David Burritt, CEO of US Steel, previously defended the sale, claiming it would boost economic and job security while strengthening the nation’s defense supply chain. “This partnership would provide stability and ensure the future strength of US manufacturing,” Burritt said earlier.
US Steel has long been considered a pillar of American manufacturing and infrastructure. The administration’s decision signals a broader push to retain control of industries vital to national security and economic resilience.