Japan’s Ishiba asks Biden to address ‘strong concerns’ in business community over blocking steel takeover deal

Tokyo: Japanese Prime Minister Shigeru Ishiba asked US President Joe Biden to address “strong concerns” in both Japanese and US business circles following Biden’s order to block Nippon Steel’s takeover of U.S. Steel, local media reported Monday.

The Prime Minister conveyed the request during an online meeting with Biden, according to Jiji Press’ report.

“Strong concerns are being raised not only in Japan but also in the US business community. I strongly urged that these concerns be dispelled,” Ishiba told reporters, but he did not disclose Biden’s response, Xinhua news agency reported.

On January 3, the US President decided to block the takeover of US Steel by Japan’s Nippon Steel, citing risks to national security, while urging the two steelmakers to “fully and permanently” abandon their plan.

On Saturday, Nippon Steel and US Steel said the Biden administration delayed until June an order for the Japanese company to abandon its 14.1 billion US dollars bid for US Steel.

Nippon Steel CEO Eiji Hashimoto has said that Biden’s decision to block its acquisition of United States Steel was politically motivated, while stressing the company has no intention to give up on the takeover deal.

Hashimoto stated last week that the Japanese steel giant would continue to fight for a successful buyout of US Steel as it has filed lawsuits against the US government as well as rival steel company Cleveland-Cliffs Inc., its CEO and the president of the United Steelworkers labor union.

“We firmly believe that the various facts that will come to light through the litigation will demonstrate that this decision clearly violated the constitution and laws,” Hashimoto said.

“A review of the deal by the Committee on Foreign Investment in the United States (CFIUS) was not properly conducted due to President Biden’s illegal intervention,” he added. “We can never accept this.”

Hashimoto’s remarks came a day after Nippon Steel said it filed a lawsuit arguing that Biden “ignored the rule of law to gain favour with” the United Steelworkers union, which is a key supporter of his Democratic Party that has opposed the takeover by the Japanese company.

The two steelmakers were asking the court to nullify Biden’s order blocking the acquisition, and to instruct CFIUS to conduct a new review of the deal. Biden’s order demands the two companies abandon the transaction “no later than 30 days after the date of this order, unless such date is extended” by CFIUS.

–IANS