WASHINGTON, Jan 3: US President Joe Biden issued an order on Friday prohibiting a $14.9 billion sale of America’s leading steel producer, US Steel Corporation, to Japan’s Nippon Steel Corporation (NSC).
“I am taking action to block this deal,” Biden said in a statement.
He pointed out that the US needs its major companies to represent a significant share of its steelmaking capacity in order to continue leading the fight on behalf of America’s national interests.
The two companies announced earlier that they have entered into a definitive agreement. Pursuant to this agreement, NSC will acquire US Steel in an all-cash transaction at $55.00 per share. This represents an equity value of approximately $14.1 billion plus the assumption of debt, for a total enterprise value of $14.9 billion.
Biden, in turn, highlighted the importance of the US having a strong, domestically owned and operated steel industry that can continue to power its national sources of strength at home and abroad. He also emphasised that US Steel will remain an American-owned and American-operated company.
“Today’s action reflects my unflinching commitment to utilise all authorities available to me as President to defend U.S. national security, including by ensuring that American companies continue to play a central role in sectors that are critical for our national security,” he said.
Biden also underscored that a strong, domestically owned and operated steel industry is an essential national security priority and is critical for resilient supply chains.
(UNI)
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