President Joe Biden on Friday blocked the proposed takeover of U.S. Steel by Japanese company Nippon Steel.
Nippon Steel had proposed paying $15 billion to take over U.S. Steel.
The Committee on Foreign Investment in the United States was unable to decide whether the deal should go through and referred the matter to Biden last month.
Biden had 15 days following the referral to block or approve the deal. If he had not acted, the deal would have been approved.
Nippon’s 2023 agreement included several concessions, including giving the U.S. government veto power over changes to output.
U.S. Steel shareholders voted in 2024 to approve the acquisition, though the proposal was opposed by the United Steelworkers union.
“We are dismayed by President Biden’s decision to block Nippon Steel’s acquisition of U.S. Steel,” Nippon Steel and U.S. Steel said in a joint statement.
The companies alleged that the decision violates federal law and that Biden’s statement did not “present any credible evidence of a national security issue, making clear that this was a political decision.”
“Following President Biden’s decision, we are left with no choice but to take all appropriate action to protect our legal rights,” they stated.
Nippon Steel previously threatened legal action if the deal was blocked.
U.S. Steel has warned that thousands of jobs would be at risk without the deal.
