US 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. U.S. Steel is the second largest steel company in the U.S., the value of the deal was estimated at $15 billion.
‘I am taking action to block this deal. My sacred responsibility as president is to ensure that America has a strong domestic steel industry now and in the future,’ the president said.
He said blocking the purchase ensures that the US national security is preserved and protects the country’s infrastructure.
Meanwhile, Axios reported that Nippon Steel intends to sue the U.S. government over the blocking of the deal because it primarily promotes U.S. interests.
U.S. Steel CEO David Burritt criticised Biden’s blocking of the company’s purchase.
‘President Biden’s action today is disgraceful and corrupt. He has politically paid off a union boss who is disconnected from his members while harming the future of our company,’ Burritt said in a statement posted on U.S. Steel’s website.
The U.S. Steel chief also added that with his actions, Biden has insulted Japanese allies and jeopardised U.S. competitiveness.
Earlier, Donald Trump announced that after his inauguration he intends to block the U.S. Steel sale deal. He also promised to return the company to ‘lost positions’