Biden blocks Nippon Steel from buying US Steel

BBC News has contacted Nippon Steel and US Steel for comment.

Nippon Steel has previously denied that it planned to reduce production or cut jobs, while US Steel had warned that it might have to close plants without the investment that would come with a new owner.

Those concerns had been echoed by some workers and local politicians.

Other business groups said they feared rejecting the transaction would chill the climate for international investment in the US.

But Biden has voiced longstanding opposition to the deal. The transaction has also been criticised by President-elect Donald Trump and the incoming vice-president, JD Vance.

A US government panel charged with reviewing the deal for national security risks failed to reach a consensus by late December, leaving the decision to Biden, who was required to act within a 15-day deadline.

In his announcement on Friday he said maintaining US ownership was important to keeping the US steel industry and it supply chains strong.

“As I have said many times, steel production – and the steel workers who produce it – are the backbone of our nation,” he said.

“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.”

Nippon Steel and US Steel have previously suggested they may pursue legal action against the government if the deal did not happen.