Biden to block U.S. Steel sale to Nippon, newspaper reports

President Joe Biden will formally block Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel, the Washington Post reported Wednesday.

The newspaper quoted anonymous sources for the article.

The proposed acquisition has been under investigation by the Committee on Foreign Investment in the United States (CFIUS), a U.S. body.

Nippon Steel proposed buying U.S. Steel last year, in a deal that has since come under scrutiny from The United Steelworkers Labor Union and attracted intense political opposition from Democrats and some Republicans.

In a visit to Pittsburgh on Monday, Vice President Kamala Harris said U.S. Steel should remain owned by an American company.

“U.S. Steel should remain American owned and American made. And I will always have your back,” she said.

Nippon Steel has said it will spend $2.7 billion through 2026 to upgrade steel plants if its plan to acquire U.S. Steel comes to fruition.

The Japanese company said at least $1 billion would be used to replace or upgrade the West Mifflin hot strip mill and other facilities to improve yield and product quality and increase energy efficiency.

Biden has said the U.S. needs to “maintain strong American steel companies powered by American steelworkers.”

Some of the loudest calls to nix the deal have come from Pennsylvania politicians.