Investing.com- U.S. President Joe Biden has decided to block the sale of US Steel (NYSE: ) to Japan’s Nippon Steel (TYO: ), the Washington Post reported Thursday night, capping more than a year of political wrangling and debate over the takeover.
CBS News previously reported that Biden would make a decision on the deal by Friday, after the Committee on Foreign Investment in the United States sent a final decision on the deal to the White House in December.
Biden largely opposed the deal, as did several lawmakers, on the grounds that it could threaten US steel supplies. The United Steelworkers union also opposed the deal, arguing it could reduce U.S. steelmaking capacity and trigger layoffs.
Biden’s rejection of the deal comes after reports said Nippon Steel had offered the government veto power over all decisions on domestic steel production, in what appeared to be a last-ditch effort to win regulatory favor for the deal.
US Steel also said Thursday it will establish a workforce training center in Pennsylvania after the Nippon Steel takeover closes.
The two companies agreed to merge in 2023, but have since faced repeated delays due to opposition from lawmakers and labor.
Nippon Steel also reportedly aimed to get approval for the deal before President-elect Donald Trump takes office later in January. Trump has vowed to block the deal.
