Title: Prime Minister Sasako Voice Concerns Over Biden's Nippon Steel Deal Blockage to U.S. Steel
In a recent three-way online meeting, Japanese Prime Minister Shigeru Ishiba voiced his concerns to US President Joe Biden over the latter's decision to impede Nippon Steel's planned acquisition of U.S. Steel. This occurrence took place alongside discussions with Philippine President Ferdinand Marcos Jr., focusing on economic security and maritime security matters in the South China Sea.
Ishiba emphasized the significance of teamwork among allies and like-minded countries to foster resilient supply chains. He further underscored the importance of enabling companies to invest without anxiety to bolster economic security. In the conversation, Ishiba specifically cited the Nippon Steel-U.S. Steel deal as an example.
Concerning the acquisition saga, the Biden administration has delayed executing an order compelling Nippon Steel to renounce its $14.9 billion offer for U.S. Steel, as announced by the companies on Saturday. The halt was implemented after Joe Biden originally hindered the deal on national security grounds back on January 3. The initial timeline for unwinding the transaction was set for 30 days.
Regarding the postponement, the intervening period will allow judicial review of lawsuits filed by both Nippon Steel and U.S. Steel against Biden's decision to block the arrangement. Furthermore, the two parties have openly declared their intention to proceed with their intentions to conclude the deal.
Both companies have taken legal action, targeting the government's action to obstruct the deal and raising allegations of manipulation and political meddling against rival domestic steelmaker Cleveland-Cliffs and the United Steelworkers union, which opposed the deal's progression.
During this ordeal, Prime Minister Ishiba introduced a request for Biden to alleviate concerns related to the deal. However, no evidence has materialized indicating that this petition has prompted a reconsideration of the blocking order.
Ishiba expressed the need for supportive business environments to strengthen economic security, highlighting the importance of unhindered investments like the Nippon Steel-U.S. Steel deal. Despite voicing concerns, there's been no indication of a change in Biden's decision to block the acquisition on national security grounds.
