US President Joe Biden has officially stopped a bigger Japanese company from buying US Steel.
As per multiple outlets, he expressed concerns that foreign ownership might pose a risk to national security.
The controversial decision to take over comes one year after Nippon Steel announced the $14.9 billion deal.
Steel had described this deal as a crucial opportunity for its smaller rival located in Pennsylvania.
The deal faced political issues shortly after it was produced as many leaders of the United Steelworkers union strongly opposed the deal.
Biden chose to cancel the deal even though some of his advisors were concerned that it could negatively impact the relationship between the United States and Japan.
In his announcement on Friday, January 1, President Biden stated that it was important to keep US ownership of US Steel in order to ensure the strength of both the steel industry and its supply chains in the US.
"As I have said many times, steel production - and the steel workers who produce it - are the backbone of our nation," he said.
Biden added, “That is because steel powers our country: our infrastructure, our auto industry, and our defence industrial base. Without domestic steel production and domestic steel workers, our nation is less strong and less secure."
