PM Ishiba Tells Biden of 'Strong' Concerns Over His Blocking of Steel Deal

Nippon Steel and US Steel Take Legal Action, Accusing Biden of 'Illegal Interference'

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Japanese Prime Minister Shigeru Ishiba told US President Joe Biden that his blocking of Nippon Steel's takeover of US Steel has raised "strong" concerns in both countries, according to local media reports on Jan 13.

The comments came during a three-way call with Philippine President Ferdinand Marcos Jr that, according to the White House, also touched on China's "dangerous and unlawful" behavior in the region.

Citing national security concerns, Mr Biden nixed Nippon Steel's US$14.9 billion (S$20.5 billion) acquisition of US Steel earlier in January, irking close ally Japan where the US has some 54,000 military personnel.

"I said that strong voices of concerns are being raised not just in Japan, but also in the US business community, and I urged (Biden) to dispel these feelings," Mr Ishiba said after the call.

Blocking a takeover by a Japanese firm is highly unusual, and both firms have launched legal action, accusing the outgoing US President of "illegal interference".

Nippon Steel had touted the acquisition as a lifeline for US Steel, but opponents warned that the Japanese giant would slash jobs-despite its assurances to the contrary.