Biden Maintains Opposition to Nippon Steel’s Bid for U.S. Steel

DOVER, Delaware – U.S. President Joe Biden reaffirmed his opposition to Nippon Steel’s $14.9 billion bid for U.S. Steel on Friday, despite his administration’s decision to extend a national security review of the proposed merger.

When asked if the extension signaled a change in his stance, Biden responded, "I haven’t changed my mind."

Both Nippon Steel and U.S. Steel have not yet commented on the situation. Biden’s comments dampened expectations among supporters of the merger, who hoped the Committee on Foreign Investment in the United States (CFIUS) would approve the deal, which is currently under scrutiny for potential national security risks.

The proposed merger faced significant hurdles after CFIUS claimed in late August that it posed a risk to the U.S. steel supply chain vital to critical industries. However, reports earlier this month that a decision on the politically sensitive merger would be delayed until after the November 5 presidential election gave some supporters hope that it might eventually gain approval.

Biden, along with Vice President Kamala Harris and Republican presidential candidate Donald Trump, have expressed that U.S. Steel should remain under American ownership. The company is based in Pennsylvania, a key swing state in the upcoming election. The United Steelworkers Union has strongly opposed the merger, and both political parties are working to attract union voters.

In light of CFIUS’s concerns about national security, Nippon Steel submitted a comprehensive response outlining plans to invest billions in U.S. Steel facilities that may have faced closure. The company committed to maintaining and potentially increasing domestic steel production capacity and pledged not to transfer any U.S. Steel jobs or production outside of the United States. Additionally, they stated they would not interfere in U.S. Steel’s trade decisions, including any actions against unfair trade practices.