US President Biden Blocks $14 Billion Nippon Steel Takeover Amid Security Concerns

In a surprise move, US President Joe Biden has announced plans to block a proposed $14 billion takeover of U.S. Steel by Japanese giant Nippon Steel, citing national security concerns that outweigh the potential economic benefits.

According to sources familiar with the matter, President Biden's decision is expected to be made public as early as Friday, marking an extraordinary use of executive power by a president nearing the end of his term in office.

This move marks a significant departure from America's long-standing culture of open investment in sensitive industries, and could have far-reaching implications for the US economy. The decision is also likely to cause ripples beyond the economic sphere, straining relations with Japan - a close ally of the United States and one of its largest sources of foreign investment.

The President's decision follows a report by a federal committee reviewing the deal, which declined to make an official recommendation on whether the takeover should be allowed to proceed. The White House had sought formal advice from the committee, and President Biden's move now ensures that the transaction is not approved.

While details of the takeover are still subject to review, experts warn that this decision signals a shift in America's handling of sensitive business deals. "This is an extraordinary use of executive power," said an insider source. "It sets a worrying precedent for foreign investors considering acquiring American companies."

The reaction from Japan is yet to be seen, but diplomatic spats with the US are already brewing following the announcement.