Biden blocks Nippon Steel’s U.S. Steel acquisition on national-security grounds

President Joe Biden issued a January 3, 2025 order blocking Nippon Steel’s proposed acquisition of U.S. Steel. The order used the president’s authority under section 721 of the Defense Production Act, the CFIUS statute, and said there was credible evidence that the transaction might threaten to impair U.S. national security. Biden ordered the companies to abandon the transaction and certify that they had done so, while allowing CFIUS to oversee compliance. The decision mattered because it treated ownership of a major domestic steelmaker as a national-security issue and showed how presidential power over foreign investment can override a private merger even when the buyer is from a U.S. ally.