This article was automatically translated from HIBAPRESS, the Arabic version:
Hibapress
American President Joe Biden decided on Friday to block the sale of the American steelmaker, US Steel, to the Japanese company Nippon Steel, thus honoring his promise to keep the famous steel producer in the hands of the United States.
Biden’s decision comes following the Committee on Foreign Investment’s examination of the risks of the Japanese company’s offer to American national security. In an order issued Friday, the White House asked the two companies to abandon the deal within 30 days. Nippon Steel had offered $14.1 billion for the takeover of the American metallurgist.
“Large American companies representing the majority of America’s steel production capacity must continue to lead the fight on behalf of America’s national interests,” President Biden wrote.
Nippon Steel, the fourth largest steel producer in the world, had valued US Steel, the third largest American steelmaker, at 40% above its market value.
The decision of the American presidency vindicates the unionists of the United Steelworkers, who have forcefully opposed the agreement since its announcement in December 2023, arguing that it would harm the capacity of the American steel industry to produce steel.
Created in 1901 by the merger of the Federal Steel Company and Andrew Carnegie’s steelworks, the American company based in Pittsburgh, Pennsylvania, is mainly active in the production of steel sheets used by the automobile, household appliances and construction.
