Nippon Steel: Why did Biden block a $15B Japanese takeover of US steel? | DW News

Incumbent President Joe Biden has blocked a $15 billion takeover of US Steel by Japan's Nippon Steel.

Biden said it was necessary to protect American industry and prevent a key national asset from coming under foreign control. Both Biden and President-elect Donald Trump also opposed the takeover to protect jobs. Nippon Steel is to challenge the decision. The White House says it's not a slight against Japan, and is aimed at keeping steel production in the US.

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[MrHorse-bymp]

This is not about national security. This is pure nostalgia for the days of America's industrial supremacy. United States Steel was once one of the largest companies in the world and its headquarters, Pittsburgh, Pennsylvania, was the cauldron of America's heavy industry. Once but long ago. US Steel has atrophied for decades, culminating in its humiliating de-listing from the S&P 500. It is less than a shadow of its former self. The deal with Nippon Steel was the last chance for this decrepit dinosaur of a company.

[gorilla_meister]

The problem is that Nippon Steel has to pay a huge penalty fee to U.S. Steel despite doing nothing wrong. I can understand the sentiment of not being happy about a domestic company falling under the umbrella of a foreign company. For example, if Toyota were to be taken over by a foreign corporation, I wouldn’t feel good about it either. However, the U.S. government, without helping U.S. Steel, only interferes and now tries to extort money from Japan. This is morally unacceptable. That said, this is the business world.Nippon Steel’s legal team was not thorough enough. This will serve as a lesson, and Japanese companies will likely become much more cautious about dealing with the U.S. in the future.

Damn, a penalty of 560 million dollars? Do they realize how many families of hardworking Japanese employees at Nippon Steel could be supported with that amount of money?😓

[whereishe]

in the first place, if the us government had given enough support to us steel, nippon steel wouldn’t have had to do this. And now it’s not allowing nippon steel to help them out. It’s so funny

[IK_MK]

Remember, it's only capitalism when the US is winning 😂

[kirinsanww]

US Steel: "We want to be acquired."
Employees: "We want to be acquired."
Mayor: "We want them to be acquired."
Nippon Steel: "We’d like to acquire them."
Biden: "Nope!"

America's national security isn't so fragile that it depends on a struggling company like US Steel. In the end, it’s just the government caving to union pressure.

[gunmarcyan]

I am Japanese. After GM filed for Chapter 11 bankruptcy, the US government and the United Auto Workers rebuilt it. If US Steel goes bankrupt, the US government and the United Steelworkers should also rebuilt it. Otherwise, I feel sorry for the employees of US Steel and the people of Pittsburgh. Right now, China is producing steel in quantities far exceeding global demand, causing prices to collapse. In order to survive in this environment, steelmaking technology is evolving every day, such as hydrogen reduction steelmaking that does not use coke for reduction, high-tech steel, and steel made by controlling the microstructure using nanotechnology, and I believe that using these technologies is the way to survive in the steel industry. It is unfortunate that US Steel cannot use the new steelmaking technology that uses the advanced technology that Nippon Steel possesses.

[Chisato_Strafe]

Yea block japanese company, and maybe later on let chinese company buys it. 😂

[TakiX-do]

US steel「買収してほしい」
従業員「買収してほしい」
市長「買収してほしい」
日本製鉄「買収したいです」
バイデン👴「ダメー」
アメリカの安全保障は倒産しかけのUS steelに左右されるほど脆くないでしょうに...
結局労働組合の圧力に政府が負けただけ

[maximusasauluk]

"Free market" right, Americans?

[andryu-san]

Americans and Chinese are similar. Both are proud and don't know how to concede.

[joshuam.]

China will buy it, big mistake Joe, big mistake

[zolo_LR]

Japan, Taiwan, Australia…. Treated America as best partner, America treated japan, Taiwan, Australia…just like bed partners…. Just for fun 😂😂

[mxbxx]

“It may be dangerous to be America's enemy, but to be America's friend is fatal.”

― Henry Kissinger

[Flynbourne]

It doesn’t make much sense really. Pretty terrible decision. The national security argument is idiotic.

[andi_Lee]

Japan already manufacture US fighter jets: F15, F16, F35, and working on the future F-X, all jointly w/ Mcdonnell Douglas, and Lockheed Martin. How's relatively low-tech steel manufacturing be a security risk?

[robwyyi]

Not single word DW why Japanese investors are needed. American investors rejected US Steel needs, not desire, in order to survive in steel industry. American investors(Wall Street) rejects major capital investment in general. US Steel by their misguided decision stayed with out dated steel(blasting furnace) manufacturing. While rest of world went to eaf furnace American steel makers continued inefficient blast furnace. With few minor exception (Nucor), by the way they are now major players because they evolved like other mills that went to eaf steel. Now Nucor is dominating US Steel. Politicizing steel will only kill the American traditional steel power houses.

[fdr]

why would u ever block anything from japan especially manufacturing

[サンタマリアデッレグラッツェ]

I'm Japanese, but there is no surprise to hear this news at all. Japan already has an unequal treaty with the US (even though US soldiers commit a crime in Japan, they are basically innocent if they escape to the base. In fact, there has been an incident where a young girl was raped and murdered), and the US usually looks down on Japan, so it sometimes ignores the treaty. Furthermore, the US, which is supposed to be capitalist and liberal, withdrew from the TPP (which means FTA in Pacific coastal countries) in order to win the election, Furthermore, in the past, they pressured Japan and conducted unequal trade practices (I think it was shortly after the WTO was established). In fact, the US still disregards the WTO and trades with other countries as America First, not as a liberal or capitalist country. Japan is not an ally of the US, but merely a vassal state or colony😂

[kokofoever]

China laughs out loud at this decision

[Elegant-Capybara]

The Dissolution of Bethlehem Steel in the 2000's is already a travesty and hard lesson for US industry. Nippon Steel has a good track record of not just shutting down and consolidating at the first opportunity. We would need immediate and ongoing investments to modernise and keep US Steel competitive.

Without investments, some of the Mills will have to be closed down or be sold to Clifford, who will close it down and consolidate. Nippon Steel is the best partner I see on the horizon for US Steel.