Biden blocks Nippon Steel's proposed deal to acquire U.S. Steel

Talk about a slap in the face for Japan. I trust Joe Biden carefully considered what the longer term ramifications of actions like this are.

A U.S. company has never been allowed to purchase any strategic Japanese company ever. In addition the Japanese Govt. has purchase restrictions on over 600 Japanese companies whereby even if they want to purchase just 1% of a Japanese company it would require prior Govt. approval. Japan does not play fair... so why should anyone in Japan be bent out of shape when the U.S. does the same? Let the U.S. bail out U.S. Steel, just like Japan bailed out its steel companies over 30 years ago and leave it at that.

Thought the US was all about letting the free market determine the outcome. Guess not.

Really poor decision by Biden. The only hope for US Steel is for the Nippon Steel bid to be allowed to go through.

There is no "white knight" coming in for US Steel - this is the end if the road for them, and thousands of jobs. No US company is interested.

The US will just nationalise it, attempting to be more China than China.

quote: any company based in a U.S. allied country contemplating significant investment in the United States.

Any company in that position should give its board medical leave and suggest they see a therapist.

Keep your cash in the bank. Global economic chaos incoming.

that decision saved nippon steel a lot of money.

if the deal has gone through, then canceled by the u.s. government, nippon steel was obligated to pay us steel over $400 million.

us steel owns plants or has joint ventures in korea, canada, serbia, other eastern european countries.

people talk about national security with only domestic steel being allowed in navy shipbuilding, but shipyards are so understaffed, they can't build ships and can’t find workers.

shipbuilders are using or contracting companies with undocumented immigrant welders, pipe fitters and other workers.

national security… right.

political buffoonery.

Called it. This was doomed from the start. No other country would have let it happen either, don't fool yourselves. Plus it's not like Japan is bursting with people wanting to be in the steel industry either.

Of course, he did! No smart country on earth would do something that dumb.

Good move by Biden as Japan doesn’t allow foreign companies to buy theirs.

Have the MAGA people been told what to think about this yet?

And what alternative solution is Biden offering to save US Steel？Without it, this is a bigger slap in the face for the U.S. than it is for Japan. Nippon Steel doesn't need this sale, it's US Steel that does. The U.S. can not nationalize US Steel, and no American investors are prepared to save it.

A few years down the road US Steel will be in bankruptcy because it can not compete with the Chinese steel companies that are dominatig the global market. I thought US Steel was needed for America's security.

Short sighted decisions today bring bad news in the future.

This was the last life saver for decadent US steel industries..

Well Japan does not need it..

Good old US making itself easier the job for China..

LOL

This was the last life saver for decadent US steel industries.. 

No, not it’s not.

Well Japan does not need it.. 

Then why are they ticked off that that the deal didn’t go through?

Good old US making itself easier the job for China.. 

China has their own wavering infrastructure it needs to worry about.

Look at that picture, these are a dime a dozen in Pennsylvania and Ohio. They just don’t have the glittery “U.S.”prefix the Japanese want.

As mentioned why not make it state subsidized? Because you’re not Communist or some silly reason of not wanting to do what China does?

After all the anti Trump articles on this topic?

Biden blocked it.

but that’s (D)ifferent.

OssanAmericaToday 08:13 am JST

And what alternative solution is Biden offering to save US Steel？Without it, this is a bigger slap in the face for the U.S. than it is for Japan. Nippon Steel doesn't need this sale, it's US Steel that does. The U.S. can not nationalize US Steel, and no American investors are prepared to save it.

A few years down the road US Steel will be in bankruptcy because it can not compete with the Chinese steel companies that are dominatig the global market. I thought US Steel was needed for America's security.

Short sighted decisions today bring bad news in the future.

Heard of the September 2008 Federal takeover of Fannie Mae and Freddie Mac, the two GSEs had outstanding more than US$5 trillion in mortgage-backed securities (MBS) and debt; the debt portion alone was $1.6 trillion that had threatened to disrupt the U.S. housing financial market? The conservatorship action and commitment by the U.S. government to backstop the two GSEs with up to US$200 billion in additional capital? This deal Biden blocked is only US$15 billion, do you REALLY think the US government would allow the steel industry, the backbone of American industrial and military might, to go under? Lastly, do you REALLY think that if the situation were reversed and NIPPON Steel were having a rough go and on it's knees that the J-Gov would sign off on a takeover by ANY foreign entity, even one from the US? Ahhhhh, NO!!! A short sighted decision, no, a strategic long term one, yes!

U.S. Steel gotta learn to stand alone or move on and let some other U.S. companies run the show, enough of this B.S. about shutting down and layoff people to force the nation into accepting the proposed deal, If you can't stand the heat get out of the kitchen U.S. Steel.

Well Done Sir.

U.S. Steel will have to learn to save itself or GIVE IT UP and let the workers buy the company like many others.

Another huge mistake on the part of Mr Biden which will come back and bite the United States of America for decades to come.

It sends a strong message to the world that common sense does not matter … the only thing that matters is political pandering to a tiny special interest.

Forget it and walk away from the table, if the union doesn't want it, it ain't gonna work. I just want to know how much NS paid Mike Pompeo to broker the deal? Should ask for a refund...

Welcome to the USA Imperial Presidency. Trump will use even more executive orders sidelining Congress, the people’s forum, even more.

us steel got a bailout/incentive package before to modernize and invest to bolster u.s. steel production,

they didn’t do it, they bought an oil company instead.

if the u.s. wants to keep it u.s. hands, i have no heartburn with that. live with the decision you make.

What the heck. First comment is that this is a slap in the face to Japan??? Japan’s a country. Japan steel is a company. It’s nothing to do with the country relationship but an issue with who owns the company outright which is a foreign entity. TikTok while a foreign company is controlled heavy by the Chinese government and is a different issue all together. Am I wrong that Japan steel is not controlled by the Japanese government?

US steel is just that a company that must be maintained American owned and operated and they could solve the issue by creating an American entity and have it managed and run by Americans. Problem solved.

When we hear the name "US Steel" we think enormous American industrial powerhouse, and yet that's all fantasy. Where once 340,000 people worked for US Steel, now there is a measly 20,000. Sorry but a company with only 20,000 employees can't be a "critical industry" for America's economy, simply due to the fact that it employs so few people, relatively speaking. On an emotional level, I can understand why people don't like the idea of a Japanese company taking over a historic American establishment like US Steel, but at the end of the day there was no truly valid reason for intervening to stop this sale other than some union people protesting against the sale. At first I was against the sale - Japan, after all, is one of the most protectionist countries on the planet when it comes to selling assets to foreign companies - but once I realized that US Steel is now a greatly diminished company from what it once was, I can't see any valid rational reason for stopping the Japanese from making the purchase. I'm not sure what motivated Biden, at the 11th hour of his presidency, from stepping into this matter. Then again I haven't been able to make sense of anything Biden says or does for well over a year now.

do you REALLY think the US government would allow the steel industry, the backbone of American industrial and military might, to go under?

That’s just sour grapes. The Japanese are not going takeover US Steel. What were their egos thinking?

I'm not sure what motivated Biden, at the 11th hour of his presidency, from stepping into this matter.

To steal Trump’s thunder what else?

US Steel was already decrepit and struggling when I lived near Pittsburgh in the 1970s. What surprises me is how they still even exist.

And is slashing jobs is really such a problem to the government, why did they say nothing to Elon Musk when it mattered? (Thinking Twitter, etc., now renamed.)

Edit, is = if

Really the only sensible decision Biden has ever made - not to mention promised to do (with Trump unequivocally paving the way by promising to do so months before him while he dithered).

This prevents the inevitable dismantling of USS by NS which would have cannibalized it in many ways: offshoring production to - you guessed it - Japan, mistreating workers (and the families), abuseing local communities, asset stripping, all the while after the cynical objective - putting USS permanently out of commission, edging a competitor out in a crowded marketplace whiling stealing their market share by underhanded tactics.

This was a choice of whether Japan or the US's steel industry goes down the gurgler. Allowing it to proceed would be akin to being complicit in an economic war-crime of a sneak attack nature - with the workers, unions and communities given a forced corporate bayonet death march - as NS's promises weren't worth the paper they were written on and were obviously lies by quarters licking their chops at the upcoming financial pillage, carnage and conquering, which they thought they could bribe their way into by hiring certain former officials. Shame on them all.

Great for one point only. This defunk industry is bleeding millions each week to keep it operating. So someone will have cover this bleeding or started importing China 25% Plus more now rolled steel. It would have be a fool who would take over now. Only option is for the government to take ownership. You have ask yourself what is the next component of industrial manufacturing section will the government bail out next. This what the USA deserve and countries who were effected by the Plaza accord will be saying the exact same statement.

For once, Biden made the right decision.

If the situation were reversed, the J-Govt would never allow such a deal to go ahead either.

Another good comment from リッチ. And don’t forget Trump would most likely have done the same thing. Biden’s action has saved Trump from being the villain. What a sacrifice.

Terrible decision.

Pointless having a friend shoring program if you're not going to shore to your friends.

Pointless citing national security if your actions will almost certainly weaken this already-struggling sector, which could be strengthened by your friend.

Motivation? Maybe with this transparently symbolic act the "blue-collar" president, Scranton Joe, is knocking the ball over the MAGA net into the court of that other "American workers' president" to deal with in the future.

US steel is just that a company that must be maintained American owned and operated and they could solve the issue by creating an American entity and have it managed and run by Americans. Problem solved.

Who is "they"?

You mean an American White Knight company, ready to step up and rescue dying US Steel? They've literally had decades to do so and haven't.

One would hope every US Steel employee is now undertaking training in different industries, because no-one is going to rescue their jobs if Nippon Steel's offer is rejected.

Capitalism for me but not for thee. Trust America at your own peril.

Oh well. Time to move on. The president carefully reviewed the deal and obviously believed it was not in the best interest of the U.S. and I'll side with his expert judgment.

This prevents the inevitable dismantling of USS by NS which would have cannibalized it in many ways: offshoring production to - you guessed it - Japan

You still think the Japan of today is the Japan of 40 years ago? The world has changed significantly.

Not an unexpected move by Biden.

US steel will be propped up by the taxpayer, for security reasons. The US can not afford to lose its steel industry, if it did it could not remain a super power. It would become vulnerable.

McCall's reference to Nippon Steel as a "serial trade cheater" touches on longstanding allegations and disputes regarding foreign steelmakers' trade practices. This criticism likely stems from historical accusations of steel dumping, where foreign companies sell steel at prices below cost in the U.S. market, which can undermine domestic producers like U.S. Steel. The perception here is that Nippon Steel might not act in the best interest of the U.S. steel industry or its workers, potentially prioritizing its own global market strategies over American economic interests.

Why are we pretending that Biden is making any decisions other than his next vacation destination and post nap ice cream flavor? He did tell us recently how much likes though…

This is ‘team’ Democrat showing us yet another bad decision, consistent to the very end. Luckily the damage will be finally done in a few weeks. Sorry Japan, a staunch U.S ally ( the deal would’ve been a win win ), had to be on the receiving end of these jokers. Just bad timing really.

I agree with Rick Kaminski13, except in this regard: I don't think that Joe B gets to choose anything, not even his ice-cream flavor...It's encouraging to see that most commentators here, the usual bashers notwithstanding, recognize the "Biden" administration's move as lose-lose.

kicking the most expensive tin can down the road?, rattle rattle, only 20K employees.

How will this affect Japanese carbon steel golf clubs and steel golf iron shafts? That is all I'm concerned about. Lol.

The only winner on this story is China, who rejoice having 1 less competitor in the steel industry.

I read that Nippon Steel has too much business and US Steel doesn't have enough and may go bankrupt, so the combination seems like an ideal business deal. What could go wrong?

Biden only did this to buy favor for Democrats with the steelworkers union BEFORE Trump could come into office and get that credit. It's strictly politics at this point.

Oh, and by the way, Joe only gets to decide what flavor jello he wants at lunch. Someone else made this decision. Whomever is running the US at the moment cause it aint dirty diaper Joe!