U.S. Steel drama shows declining industry still has political clout

Deal's collapse should not discourage Japanese M&A in the U.S.

U.S. President Joe Biden blocked Nippon Steel's bid for U.S. Steel, citing "risk for our national security and our critical supply chains." (Source photos by Nikkei, Reuters)

ATSUSHI NAKAYAMA, Nikkei commentator

January 4, 2025 02:56 JST

TOKYO -- U.S. President Joe Biden's decision on Friday to block Nippon Steel's bid for U.S. Steel shows the outsized influence steel jobs have on American politics, despite being in a state of decline.

Biden ordered a stop to the $14.9 billion acquisition, citing national security concerns. The steelmakers have said they will "take all appropriate action to protect our legal rights."