President Joe Biden has rejected Nippon Steel's $14.9 billion proposal to purchase U.S. Steel.
In a statement the president says it’s important for U.S. Steel to stay domestically owned.
“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Mr. Biden said in a release. “As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.”
You can read the full statement here.
His decision comes after the Committee on Foreign Investment in the United States failed to reach consensus on the possible national security risks of the deal.
Nippon Steel reacted to the decision, calling it "unlawful". You can read their full reaction here.
Pennsylvania Governor Josh Shapiro and Lt. Governor Austin Davis released statements shortly after the decision from Biden.
Statement from Governor Josh Shapiro:
"Since the day this proposed deal between U.S. Steel and Nippon Steel was announced, my team and I have been engaged in intensive dialogue with all parties involved – and my top priority, as always, has been protecting Pennsylvania workers and fighting for a better future for our Commonwealth. Over the past year, I have worked to bring the parties involved together to protect Pennsylvania jobs, secure commitments to make major investments in our Commonwealth, and stand up for the Pennsylvania workers who built U.S. Steel from the ground up.
“The federal government has the sole authority to approve or block this deal – and throughout the last year, both President Biden and President-elect Trump made clear that they were opposed to it. President Biden has now used his authority to block the transaction.
“As next steps play out and as I have expressed directly to U.S. Steel leadership, I expect U.S. Steel to uphold their commitments to Western Pennsylvania, refrain from threatening the jobs and livelihoods of the Pennsylvanians who work at the Mon Valley Works and at U.S. Steel HQ and their families, and work
collaboratively to ensure the future of American steelmaking takes place right here in our Commonwealth. I also expect any other potential buyers to demonstrate the strong commitments to capital investment and protecting and growing Pennsylvania jobs that Nippon Steel placed on the table during my continued dialogue with their leadership – and I will continue to engage with all interested parties directly as I continue to fight for Pennsylvania.
“This matter is far from over – we must find a long-term solution that protects the future of steelmaking in Western Pennsylvania and the workers who built U.S.
Steel and built this country.”
Statement from Lieutenant Governor Austin Davis:
"This issue is personal for me. I grew up and still live in the shadow of U.S. Steel plants. I went to high school with people who work at the Mon Valley Works. I know the pain and frustration of my neighbors who watched as the steel industry collapsed, laying off thousands of workers and shuttering factories, while leaders in Washington did nothing. I'm deeply concerned this is happening again – and that is unacceptable.
"Now that President Biden has blocked this deal, we need to find a long-term plan for keeping steel production in the Mon Valley and protecting Pennsylvania workers' livelihoods. No more statements and fired-off social media posts – the workers and their families need to hear a plan.
"Governor Shapiro and I will continue to work 24-7 to bring all parties together to protect Pennsylvania jobs and ensure Western Pennsylvania remains central to the future of American steelmaking."
Pennsylvania Senator John Fetterman shared his reaction in a post on "X".