WASHINGTON, D.C. – President Joe Biden (D) issued an order today, Friday, Jan. 3, prohibiting the proposed acquisition of United States Steel Corporation (U.S. Steel) by Nippon Steel Corporation of Japan. U.S. Steel is headquartered in Pittsburgh.
President Biden said in his order Friday that the sale to the Japanese firm “might take action that threatens to impair the national security of the United States.” He cited the Defense Production Act of 1950.
The proposed acquisition of U.S. Steel by the Purchasers (Proposed Transaction) is prohibited, and any substantially similar transaction between the Purchasers and U.S. Steel, whether effected directly or indirectly by the Purchasers, through the Purchasers’ shareholders or shareholders’ immediate, intermediate, or ultimate foreign person beneficial owners, or through the Purchasers’ partners, subsidiaries, or affiliates is also prohibited.
President Joe Biden’s (D) order prohibiting sale of U.S. Steel to Nippon Steel Corp.
President Biden also released a statement calling the steel industry a vital part of the backbone of American that needs to be protected from foreign interests.
As I have said many times, steel production—and the steel workers who produce it—are the backbone of our nation. A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains. That is because steel powers our country: our infrastructure, our auto industry, and our defense industrial base. Without domestic steel production and domestic steel workers, our nation is less strong and less secure.
President Joe Biden’s (D) statement on his prohibiting the sale of U.S. Steel to Nippon Steel Corp.
President Biden’s order states that the “Purchasers and U.S. Steel shall take all steps necessary to fully and permanently abandon the Proposed Transaction no later than 30 days after the date of this order, unless such date is extended by the Committee on Foreign Investment in the United States (CFIUS)”
He added that the “Attorney General is authorized to take any steps necessary to enforce this order.”
You can read President Biden’s full order on U.S. Steel here.
You can also read President Biden’s statement on his decision to prohibit the sale of U.S. Steel to Japan’s Nippon Steel Corp. here.
