Biden Prepares To Block Nippon’s Purchase Of US Steel

President Joe Biden is prepared to block Japan’s Nippon Steel’s proposed acquisition of US Steel.

According to sources familiar with the matter, the move would deal a major blow to the $14 billion merger that has become a lightning rod in an election year as candidates on both sides of the aisle vow to protect American manufacturing.

A White House official would not comment on the president’s decision, but said the Committee on Foreign Investment in the United States, which is investigating the proposed merger on national security grounds, has not transmitted its recommendations to Biden yet. The president would oppose the deal, one source said, if the CFIUS committee recommended the deal not go through or withheld a recommendation.

“CFIUS hasn’t transmitted a recommendation to the president, and that’s the next step in this process,” the White House official said.

Customarily, a final report from the committee informs a president’s view of the potential risks a deal poses. In this case, high-profile public opposition to a deal in advance of the report’s submission may end up influencing the recommendation the committee makes. Treasury chairs the committee, which is comprised of high-level officials from the president’s Cabinet agencies who are responsible for areas of national security.

One source said the president’s announcement could come as early as this week, but cautioned the timing remains fluid.

US Steel indicated in a statement that it will continue to fight to get the deal approved, no matter what actions is announced by Biden.