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US President Joe Biden has blocked a $15bn deal by Japan’s Nippon Steel to buy US Steel, delivering a setback to Washington’s relationship with its closest Asia-Pacific ally.
Biden, who has long been opposed to the purchase, issued an order on Friday compelling Nippon Steel and US Steel “to fully and permanently abandon the proposed transaction” within 30 days.
His move comes just 17 days before he hands over the presidency to Donald Trump, who also opposes the deal.
In the order, Biden said there was “credible evidence” that through the acquisition, Nippon Steel “might take action that threatens to impair the national security of the United States”.
The announcement comes after the inter-agency Committee on Foreign Investment in the US failed to reach consensus by a December 23 deadline on whether the acquisition posed a national security threat.
US Steel shares were down almost 8 per cent in pre-market trading on Friday.
This is a developing story
