US Steel and Nippon Steel they threatened to take legal action after yesterday’s announcement by President Joe Biden to blocks the takeover of the American steel industry by the Japanese giantwith a decision with high political and geopolitical stakes.

The merger “would place one of the largest U.S. steel producers under foreign control and endanger our national security and vital supply chains,” the outgoing president said in a statement.

The US is the world’s largest importer of steel. In the field of production, China dominates overwhelmingly.

“Unintelligible” decision

Japanese Industry Minister Yoji Muto called the US president’s decision “incomprehensible” Joe Biden to block the planned takeover of US Steel by the Japanese giant Nippon Steel. “It is incomprehensible and regrettable that the Biden administration took such a decision citing national security concerns,” the Minister of Economy, Trade and Industry said in a statement to AFP today.

“This is not a decision against Japan, we are in contact with them and have shared our thoughts with them,” White House spokeswoman Karin Jean-Pierre told reporters.

“The president remains confident that American steel and American factories will continue to prosper because of what he has already accomplished. The steel industry is stronger than it has been in a long time,” she added.

In a statement, the USW metalworkers’ union expressed its “gratitude” for Biden’s decision “to keep a strong steel industry in the country.” He also called on US Steel’s management to “take the necessary decisions to grow the business” to remain profitable.

However, the two groups denounced Biden’s decision, saying the takeover ban as it stands is a “clear violation of due process” and threatening to take whatever action is necessary.

“We are appalled by President Biden’s decision, which reflects a clear violation of the fair application of the law. Instead of implementing (the process), he manipulated it to advance his political agenda,” the companies claim in their statement.

The US president “has not presented any credible evidence” that national security is at risk, they added.

The deal to buy US Steel from Nippon Steel was announced in December 2023 and almost immediately sparked reactions across the political spectrum ahead of the November 5 US presidential election.

Both o Donald Trump and Biden had promised to block the takeover of the historic American company, which was the first to be valued at more than $1 billion. dollars.

US Steel once controlled most of the nation’s steel production. It is now the third largest steelmaker in the US and the 24th largest in the world.