By Kevin Buckland and Kiyoshi Takenaka
TOKYO, Jan 13 (Reuters) – Japan's Prime Minister Shigeru Ishiba has urged U.S. President Joe Biden to ease concerns in both Japanese and American business communities regarding Nippon Steel's proposed acquisition of U.S. Steel.
Ishiba raised the issue during a virtual three-way meeting on Monday with Biden and Philippine President Ferdinand Marcos Jr. The discussions focused on economic security and maritime cooperation in the South China Sea, according to Japan's Ministry of Foreign Affairs.
“Prime Minister Ishiba emphasized the importance of cooperation among allies and like-minded nations to build resilient supply chains and create an environment where companies can invest with confidence to enhance economic security,” a ministry spokesperson stated.
Acquisition on Hold Amid Security Concerns
The Nippon Steel-U.S. Steel deal, valued at $14.9 billion, has faced significant hurdles after President Biden blocked the acquisition on January 3, citing national security concerns. The Biden administration has since delayed a definitive order for Nippon Steel to abandon the deal until June, leaving the future of the acquisition uncertain.
Significance of the Deal
The acquisition represents a strategic move by Nippon Steel to bolster its presence in the U.S. market. However, the deal has sparked debate over its implications for U.S. industrial and national security. Japan’s government sees the partnership as vital for deepening economic ties between the two nations, particularly in critical industries like steel production.
Collaborative Efforts on Economic Security
In the meeting, Ishiba highlighted the need for ally cooperation to foster a secure investment climate, which he argued is crucial for economic security and supply chain resilience. He specifically requested Biden’s support in addressing the concerns surrounding the acquisition.
The Ministry of Foreign Affairs confirmed that the Nippon Steel-U.S. Steel deal was a focal point of Ishiba's discussions with Biden, reflecting Japan's commitment to strengthening bilateral economic relations while addressing mutual security concerns.
The outcome of the deal will likely have lasting implications for the global steel industry and U.S.-Japan economic relations.
