Biden on Friday said the deal posed a risk to national security while urging the Japanese and US steelmakers to “fully and permanently” abandon their plan, which has been backed by US Steel shareholders. The leadership of the powerful United Steelworkers union strongly objected to the acquisition.
Nippon Steel, the world’s fourth-largest steelmaker, and the smaller US Steel immediately released a joint statement saying the US authorities’ review of their deal was “manipulated to advance President Biden’s political agenda” and that they will “take all appropriate action to protect our legal rights”.
Biden’s order marked the first time an American president has banned a merger and acquisition deal involving a Japanese firm.
Japan’s industry minister Yoji Muto said: “It is incomprehensible and regrettable that the Biden administration has made this kind of decision, citing national security concerns.”
“The Japanese government has no choice but to regard this seriously,” he said in a statement on Saturday.
