President Biden prohibited Nippon Steel’s acquisition of U.S. Steel Corp., exercising his authority under the Defense Production Act to block the Japanese steelmaker’s proposed deal on national security grounds.
The presidential order gives the companies 30 days to abandon the transaction announced in December, which valued the Pittsburgh-based steelmaker at $14.1 billion. The Committee on Foreign Investment in the United States will oversee the termination process, requiring weekly compliance certifications from both parties.
Biden’s intervention marks a significant setback for Nippon Steel’s overseas expansion plans. The Tokyo-based company had positioned the deal as a way to strengthen its presence in the U.S. automotive and energy sectors.
The move reflects growing scrutiny of foreign investments in U.S. industrial assets, particularly in sectors deemed critical for national security. It’s one of the few times a U.S. president has directly blocked a foreign acquisition since Congress expanded CFIUS powers in 2018.
Both companies must certify the deal’s permanent abandonment to CFIUS, with the Justice Department authorized to enforce compliance. The order also prohibits any similar transactions between the parties, directly or through intermediaries.
U.S. Steel shares fell on the news, as investors assessed the impact of the failed deal on the company’s future.
