Biden blocks Nippon Steel's $14.9B takeover bid of US Steel, citing national security concerns

President Joe Biden on Friday blocked Nippon Steel’s $14.9 billion takeover bid of U.S. Steel, saying he based his decision primarily on national security concerns.

Biden made the expected decision in an announcement posted on the White House website in which he said "there is credible evidence that leads me to believe that Nippon Steel Corporation "through the proposed acquisition by the Purchasers of United States Steel Corporation ... might take action that threatens to impair the national security of the United States."

Nippon Steel is Japan’s largest steelmaker.

Biden's decision was expected, considering he publicly opposed it. And late last month, members of the inter-federal agency the Committee on Foreign Investment in the United States, led by Treasury Secretary Janet Yellen, were unable to reach a consensus on the deal, leaving it Biden.

The deal was also opposed by the United Steelworkers labor union and incoming-President Donald Trump.

Stock for U.S. Steel, which supported the deal, decreased by close to 8% in premarket trading on Friday after Biden’s decision.