News: Biden prepared to block Japan Steel's takeover of U.S. Steel

US President Joe Biden is preparing to block Japan Steel's takeover of US steel, according to three people familiar with the matter.

US President Joe Biden's administration sent a letter to Japan's largest steelmaker, Nippon Steel, on Saturday, saying its $14.1 billion takeover of US Steel would harm the US steel industry and pose a national security risk. The news is a further indication that the US is prepared to block the deal.

The Committee on Foreign Investment in the United States (CFIUS) also said in the letter that the deal would hurt U.S. steel production and make it less likely that U.S. steel companies will continue to aggressively pursue trade remedies, people familiar with the matter said.

However, the companies said in a written response: "Rejection of the transaction would result in the shutdown of U.S. Steel's blast furnace facilities... It could result in thousands of job losses and ultimately weaken the quality and resilience of steel supply to the U.S. steel industry."

They added that the United States' actions in this matter were not based on facts, law, or U.S. national security interests, but on political reasons and third party considerations.

The White House declined to comment, and the Treasury Department, which leads CFIUS, did not respond to a request for comment.

"We fully expect to pursue all options available to us in accordance with the law to ensure this transaction is completed, which represents the best future for Pennsylvania, U.S. Steel manufacturing and all of our stakeholders," a U.S. Steel spokesman said.

U.S. Steel and Nippon Steel announced the deal in December, but it has been opposed by many Democrats and Republicans.

U.S. Vice President and Democratic presidential candidate Harris said Monday she wants U.S. Steel to remain "owned and operated by Americans." Republican presidential candidate Donald Trump has also promised to block the deal if elected.