Japan Urges US to Reconsider Block on Nippon Steel’s Acquisition of US Steel

In a recent online meeting, Japan’s Prime Minister Shigeru Ishiba urged US President Joe Biden to address concerns within the Japanese and US business communities regarding his decision to block Nippon Steel’s planned acquisition of U.S. Steel.

The request was made during a three-way discussion with Biden and Philippine President Ferdinand Marcos Jr. on Monday. The meeting focused on economic security and maritime cooperation in the South China Sea, as reported by a spokesman from Japan’s Ministry of Foreign Affairs.

“Prime Minister Ishiba emphasized that cooperation among allies and like-minded nations is crucial for establishing resilient supply chains. He stressed the importance of ensuring that companies can invest with confidence to promote economic security,” the spokesman added.

The spokesman also confirmed that Ishiba specifically mentioned the Nippon Steel-U.S. Steel deal during the discussion.

The Biden administration has postponed its order for Nippon Steel to abandon its $14.9 billion bid for U.S. Steel until June. This delay follows President Biden’s initial decision to block the acquisition on national security grounds on January 3. The companies originally had 30 days to unwind their transaction.

The postponement will allow the courts to review lawsuits filed by Nippon Steel and U.S. Steel challenging Biden’s order. Both companies have expressed their intention to proceed with efforts to finalize the deal.

Nippon Steel and U.S. Steel have filed federal lawsuits against the federal action blocking the deal, as well as against the United Steelworkers union and rival domestic steelmaker Cleveland-Cliffs, both of which opposed the acquisition.