On January 13, 2025, Japanese Prime Minister Shigeru Ishiba called on US President Joe Biden to address “strong concerns” from both Japanese and American business sectors regarding Biden’s decision to block Nippon Steel’s acquisition of U.S. Steel. The request was made during an online meeting between the two leaders, as reported by Jiji Press.
Ishiba emphasized that the move had sparked significant concerns not only in Japan but also within the US business community. “I strongly urged that these concerns be dispelled,” he told reporters, though he did not reveal Biden’s response.
On January 3, Biden blocked the 14.1 billion USD takeover, citing national security risks, and urged both steelmakers to “fully and permanently” abandon their plans. However, on January 6, the two companies revealed that the Biden administration had postponed its order until June, giving Nippon Steel more time to reconsider its bid.
Nippon Steel’s CEO, Eiji Hashimoto, criticized Biden’s decision, calling it politically motivated, and reaffirmed that the company would continue its efforts to acquire U.S. Steel. He expressed confidence that litigation would prove the decision violated the Constitution and U.S. laws.
The Japanese company has filed lawsuits against the U.S. government, Cleveland-Cliffs Inc., and the United Steelworkers union, claiming that Biden’s actions were aimed at winning support from the union, a major backer of the Democratic Party, which opposes the acquisition.
Nippon Steel and U.S. Steel are seeking to have Biden’s order nullified and to compel the Committee on Foreign Investment in the United States (CFIUS) to conduct a new review of the deal. Biden’s directive mandates the companies to abandon the transaction within 30 days unless CFIUS extends the deadline.
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