Biden blocked the acquisition of U.S. Steel by Nippon Steel of Japan

U .S. President Joe Biden has blocked the deal on the purchase of U.S. steelmaker U.S. Steel by Japanese company Nippon Steel because of threats to the country's national security. The corresponding statement was published on the White House website on January 3.

"I am taking action to block this deal. My sacred duty as president is to ensure that now and in the future America will have a strong domestic steel industry," the president said.

He noted that blocking the purchase ensures that the U.S. national security is preserved and protects the country's infrastructure.

Meanwhile, Axios portal reported that Nippon Steel intends to sue the U.S. government over the blocking of the deal, as it primarily promotes U.S. interests.

Also, U.S. Steel CEO David Burritt criticized Biden's blocking of the company's purchase.

"President Biden's action today is shameful and corrupt. He has politically paid off a union boss who is disconnected from his members while hurting the future of our company," Burritt said in a statement posted on U.S. Steel's website.

Also the head of U.S. Steel added that with his actions Biden insulted Japanese allies and jeopardized U.S. competitiveness.

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Earlier it was reported that Biden on Friday, January 3, will announce his decision on the purchase of U.S. steelmaker U.S. Steel by Japan's Nippon Steel.

Before that, on December 31, the Japanese company Nippon Steel made a new offer to Joe Biden to buy the U.S. steel company U.S. Steel. It is specified that the discussion of this issue is actively continuing in the White House. Biden is of the opinion that the proposal is "bad for workers" and creates "risks to U.S. national security".

On December 2, U.S. President-elect Donald Trump announced that after his inauguration he intends to block the deal to sell U.S. Steel to Japan's Nippon Steel. Also, Trump promised to return this enterprise lost positions.

Nippon Steel announced its intention to acquire U.S. Steel last December and planned to finalize the deal in the second or third quarter of 2024. The owners of Nippon Steel also expressed their willingness to pay the debts of the U.S. company amounting to about $742 million, as well as to retain the brand and production facilities in the United States.