President Joe Biden has reportedly decided to block Nippon Steel’s $14.9 billion acquisition of US Steel, citing national security concerns.
The decision follows a review by the Committee on Foreign Investment in the United States (CFIUS), which raised fears that the deal could reduce US Steel’s production capacity, potentially affecting critical industries.
Despite concessions from Nippon Steel, including offering the American government veto power over production cuts and maintaining US Steel's headquarters in Pittsburgh, Biden opposed the deal, emphasising the importance of keeping the company domestically owned.
Shareholders had backed the acquisition earlier this year,
Nippon Steel’s shares rose 1.2% following the news.