The amount involved is US$14.9 billion! The White House issued a statement on January 3rd saying that U.S. President Biden has decided to formally block Japanese steel companies from acquiring U.S. steel companies to prevent foreign ownership of key U.S. companies.

The United States Steel Company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania. It once provided steel for American bridges, buildings, and the U.S. Navy fleet in World War II. It played an indispensable role in the industrialization process of the United States in the 20th century, was one of the traditional pillars of American industry. However, in recent years, U.S. Steel has continued to suffer losses. Its steel output and stock market value have lagged far behind other similar U.S. companies, and it had to announce a sale.

In December 2023, Nippon Steel announced its plan to acquire U.S. Steel and turn it into a wholly-owned subsidiary. It is reported that the transaction is a cash acquisition at a price of US$55 per share, with a total amount of approximately US$14.9 billion.

In April 2024, U.S. Steel shareholders approved the acquisition plan with a majority of more than 98%.

This acquisition has been blocked by many parties in the US political circles. The Committee on Foreign Investment in the United States has previously warned that allowing Nippon Steel to acquire U.S. Steel could lead to a decline in domestic steel production capacity and pose a potential threat to U.S. national security.

The US "Capitol Hill" previously reported that critics believe that the US government has hindered foreign investment by generalizing the concept of "national security" over the years.

According to the "Nihon Keizai Shimbun" report in the early morning of January 4th, local time, Nippon Steel has decided to file a lawsuit against the U.S. government over President Biden's blocking of Nippon Steel's acquisition of U.S. steel.