Biden calls for investigation into the sale of US Steel to Nippon due to 'national security' concerns

The White House is calling for an investigation into Nippon Steel's proposed purchase of US Steel due to concerns about national security and supply chain reliability. The acquisition, valued at $15 billion, would create one of the largest steel companies globally. However, the United Steelworkers union criticized the deal as shortsighted. President Biden's economic adviser, Lael Brainard, stated that the purchase deserved serious scrutiny, even though Japan is considered a close ally. The White House sees US Steel as a vital component of domestic steel production and President Biden has positioned himself as a pro-union president. The USW welcomed the White House's statement, emphasizing that the deal could influence the future of domestic steel production. Nippon Steel believes the purchase will enhance its long-term growth prospects in the US, considering recent government investments in infrastructure and electric cars. They also assured that existing contracts with US Steel union workers would be honored, and the company would retain its name, brand, and headquarters in Pittsburgh. US Steel has been seeking a buyer since August and rejected smaller bids from domestic competitors. Nippon's offer was nearly twice the amount domestic bidders were willing to pay. US Steel, once among the world's largest companies, has experienced a decline in its dominance due to cheaper foreign competition. The company currently employs over 22,000 people globally, with more than 14,000 in the US.