WASHINGTON/TOKYO: US President Joe Biden blocked Nippon Steel’s proposed $14.9 billion purchase of US Steel on Friday, citing national security concerns, dealing a potentially fatal blow to the contentious plan after a year of review. The deal was announced in December 2023 and almost immediately ran into opposition across the political spectrum ahead of the Nov. 5 US presidential election. Both then-candidate Donald Trump and Biden vowed to block the purchase of the storied American company, the first to be valued at more than $1 billion. US Steel once controlled most of the country’s steel output but is now the third-largest US steelmaker and 24th biggest worldwide.
“A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains,” Biden said. “Without domestic steel production and domestic steel workers, our nation is less strong and less secure.” Nippon, the world’s fourth-largest steelmaker, paid a hefty premium to clinch the deal and made several concessions, including a last-ditch gambit to give the US government veto power over changes to output, but to no avail.
In a statement, Nippon and US Steel blasted Biden’s decision, calling it a “clear violation of due process” and a political move, and saying they would “take all appropriate action” to protect their legal rights.
Pittsburgh-based US Steel had warned that thousands of jobs would be at risk without the deal.
US Steel CEO David Burritt said late on Friday the company planned to fight Biden’s decision, which he termed “shameful and corrupt.” He added that the president had insulted Japan and also refused to meet with the US company to learn its point of view.
“The Chinese Communist Party leaders in Beijing are dancing in the streets,” Burritt added.
The United Steelworkers union, which opposed the merger from the outset, praised Biden’s decision, with USW President David McCall saying the union has “no doubt that it’s the right move for our members and our national security.”
White House spokesperson John Kirby defended the decision.
“This isn’t about Japan. This is about US steelmaking and keeping one of the largest steel producers in the United States an American-owned company,” Kirby said, rejecting suggestions the decision could raise questions about the reliability of the US as a partner. Nippon Steel has previously threatened legal action if the deal was blocked. Lawyers have said Nippon Steel’s vow to mount a legal challenge against the US government would be tough.
The Committee on Foreign Investment in the United States spent months reviewing the deal for national security risks but referred the decision to Biden in December, after failing to reach consensus.
It is unclear whether another buyer will emerge. US Steel has reported nine consecutive quarters of falling profits amid a global downturn in the steel industry. US-based Cleveland-Cliffs, which previously bid for the company, has seen its share price fall to the point where its market value is lower than that of US Steel.
Shares of US Steel closed down 6.5 percent at $30.47 on the New York Stock Exchange.
A spokesperson for President-elect Trump, who also vowed to block the deal, did not immediately comment on Friday.

KEY ASIA ALLY
Japanese industry and trade minister Yoji Muto expressed disappointment over Biden’s decision, saying it was both difficult to understand and regrettable.
“There are strong concerns from the economic circles of both Japan and the US, and especially from Japanese industry regarding future investments between Japan and the US, and the Japanese government has no choice but to take this matter seriously,” he said in a statement. Japan is a key US ally in the Indo-Pacific region, where China’s economic and military rise and threats from North Korea have raised concerns in Washington. In November, Japanese Prime Minister Shigeru Ishiba urged Biden to approve the merger to avoid marring efforts to improve economic ties, Reuters exclusively reported.
US Steel and Nippon Steel had sought to assuage concerns over the merger. Nippon Steel offered to move its US headquarters to Pittsburgh and promised to honor all agreements in place between US Steel and the USW. A source familiar with the matter said this week that Nippon Steel had also proposed giving the US government veto power over any potential cuts to US Steel’s production capacity, as part of its efforts to secure Biden’s approval.
Nippon Steel faces a $565 million penalty payment to US Steel following the deal’s collapse, which is set to prompt a major rethink of the Japanese company’s overseas-focused growth strategy.
With the acquisition of US Steel, Nippon Steel aimed to raise its global output capacity to 85 million metric tons a year from the current 65 million, nearing its long-term goal of taking capacity to 100 million tons.
“The Nippon deal would have increased the ability to have more competition for domestic steel,” said Chester Spatt, a finance professor at Pittsburgh’s Carnegie Mellon University. “The deal could have potentially created a competitive advantage, and we should have encouraged it.”
Democrats in Congress praised Biden’s decision. Senator Sherrod Brown said the deal “represented a clear threat to America’s national and economic security and our ability to enforce our trade laws.”
Jason Furman, who was an economic adviser to President Barack Obama, said Biden’s claim that Japan’s investment in an American steel company was a threat to national security was “a pathetic and craven cave to special interests that will make America less prosperous and safe. I’m sorry to see him betraying our allies while abusing the law.” (Reporting by David Shepardson and Andrea Shalal in Washington and Tim Kelly in Tokyo; Additional reporting by Devika Nair, Kanishka Singh, Alexandra Alper, Yuka Obayashi, Satoshi Sugiyama, Aatreyee Dasgupta, Yoshifumi Takemoto, Sakura Murakami, Nobuhiro Kubo and Amy Lv; Writing by Lincoln Feast and John Geddie; Editing by David Gaffen, Heather Timmons, Paul Simao and Matthew Lewis)

MADRID: Jude Bellingham missed a penalty but scored a late winner and Vinicius Jr. was sent off as 10-man Real Madrid fought back in the most dramatic of fashions to beat Valencia 2-1 and return to the top of La Liga on Friday.

Luka Modric’s 85th minute equalizer and Bellingham’s stoppage time winner ensured that Madrid avoided back-to-back defeats in La Liga for the first time since 2019.

The win took it to 43 points, two above city rivals Atletico, albeit having played a game more.

The match at the Mestalla pitted second from bottom against second from top and it was the struggling home side which took the lead after 27 minutes. Hugo Duro stabbed the ball into the empty net after it came back off the post.

Madrid came into the game more in the second half but it looked like it would be a frustrating night for the capital club.

Kylian Mbappe won a penalty after 55 minutes but Bellingham’s shot hit the post and moments later the Frenchman himself saw a goal disallowed after a video review.

Things got worse for Real with 11 minutes remaining when Vinicius pushed goalkeeper Stole Dimitrievski and the referee, after a long video review, showed the Brazilian a red card.

However, Real are never out of it and Carlo Ancelotti’s late changes turned the game around.

Modric came on in the 80th and it took the 39-year-old Croatian just five minutes to make his mark, dancing through a sea of defenders and poking home the equalizer.

Even with a man less there was a sense of inevitability as Real pushed for a winner, and five minutes into added time Bellingham made up for his earlier miss.

Valencia defender Hugo Guillamon seemed to slip and lay the ball into the path of the advancing Englishman, who made no mistake with only the keeper to beat.

Even then the drama was not over. Valencia deserved to take something from the match and Luis Roja almost got an equalizer with the last kick of the game. He watched in agony as his long-range shot came back off the post.

Valencia stayed second from bottom.

Pontevedra slay another giant in Copa

Earlier, fourth-tier club Pontevedra dispatched high-flying La Liga side Mallorca 3-0 to move into the last 16 of the Copa del Rey.

Dalisson de Almeida scored from almost 40 yards to make it 1-0 after 21 minutes, Yelko Pino doubled the lead with a cracking volley four minutes into the second half, and then Rufo rounded off the perfect night with 18 minutes left after a shocking defensive lapse.

The Galician side knocked out Villarreal in the last round.

In the night’s other games, top-tier clubs Rayo Vallecano and Getafe progressed.

Getafe needed extra time to beat second-division Granada in southern Spain. After a goalless match, Borja Mayoral got the only goal in the 93rd minute to put the visitor through.

Rayo Vallecano made swift work of second-tier Racing Ferrol. Alfonso Espino and Jorge de Frutos put the visitors 2-0 up before halftime and Frutos grabbed a third on the hour mark.

Alvaro Gimenez scored a late consolation for the home side.