Japanese government officials told Euronews that the Biden administration’s decision to block Nippon Steel’s acquisition of U.S. Steel could impact future U.S.-Japan investment.
advertisementPresident Joe Biden on Friday honored a pre-election promise and blocked Nippon Steel’s controversial proposed nearly $15 billion takeover of Pittsburgh-based U.S. Steel Corp.
“To continue leading the fight on behalf of America’s national interests, we need America’s largest companies, which account for a major share of America’s steel production capacity,” Biden said in a statement.
A Japanese government source exclusively told Euronews, “Nippon Steel believes that this acquisition is an effort by Japanese and American steel companies to combine advanced technologies to increase their competitiveness, and will help maintain U.S. steel production capacity and jobs.” I’m explaining,” he said. . ”
The official also noted the growing trend of Japanese investment in the United States, as well as the “strong concerns” raised by the business communities of both countries, particularly Japanese industry, about future investments between Japan and the United States.
“It is unfortunate that this decision was made out of national security concerns,” the official added, calling on the U.S. government to work with partners to address the issue.
Rebellion between Nippon Steel and US Steel
Both Nippon Steel and U.S. Steel condemned the decision and released a joint statement saying Biden’s actions “demonstrate a clear violation of due process and the law” and that the process was aimed at his political agenda. He claimed that he had been “manipulated” to promote the campaign.
The companies’ joint statement also asserted that Biden had not cited any credible evidence of transactions that raised national security concerns, saying he had no choice but to take “all appropriate action to protect his legal rights.” “No,” he said, suggesting legal action.
Biden’s decision comes after the Committee on Foreign Investment in the United States (CFIUS) last month sent Biden a long-awaited report on the merger after failing to reach a consensus on the potential national security risks posed by the deal. This was done in response to what was done. There was a grace period of 15 days for a final decision.
The decision, made weeks before the Democratic president leaves office, could have a negative impact on U.S. relations with Japan, America’s largest ally in Asia and the largest foreign holder of U.S. debt. be.
Both steel companies said in a statement that it was “shocking and deeply troubling” for the United States to reject deals that advance American interests and “treat an ally like Japan in this way.” .
“Unfortunately, this sends a chilling message to companies based in U.S. allies who are considering making significant investments in the United States,” the companies said.
Many conservatives and business groups such as the U.S. Chamber of Commerce publicly backed the deal, as Nippon Steel began winning support from some steel union members and mayors in areas near blast furnaces.
According to statistics from the World Steel Association, Nippon Steel will become the world’s fourth largest steel manufacturer in 2023. U.S. Steel was 24th.
Additional sources • AP
