Japanese PM Raises Concerns with Biden over His Move to Block Nippon Steel Deal

By Evans Momodu
1 minute read


Japan's Prime Minister Shigeru Ishiba has urged U.S. President Joe Biden to address concerns among Japanese and American business communities regarding the order blocking Nippon Steel’s acquisition of U.S. Steel.

The request was made during a virtual meeting on Monday with President Biden and Philippine President Ferdinand Marcos Jr., focusing on economic security and maritime cooperation in the South China Sea, according to Japan’s Ministry of Foreign Affairs.

Prime Minister Ishiba emphasized the importance of cooperation among allies and like-minded nations to build resilient supply chains and promote economic security. He stressed the need for an environment where companies can invest without apprehension, specifically referencing the Nippon U.S. Steel transaction.

The Biden administration initially blocked the $14.9 billion acquisition on January 3, citing national security concerns. However, the administration has since delayed the order to unwind the transaction until June, allowing time for judicial review of lawsuits filed by Nippon Steel and U.S. Steel.

The lawsuits challenge the federal action that blocked the deal, as well as the roles played by the United Steelworkers union and Cleveland-Cliffs, a domestic steelmaker that opposed the acquisition. Both Nippon Steel and U.S. Steel remain committed to pursuing the transaction despite the ongoing legal and regulatory hurdles.
Source: CNN