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Japanese Prime Minister Shigeru Ishiba conveyed "strong" concerns to US President Joe Biden regarding the blocking of Nippon Steel's proposed takeover of US Steel, according to local media reports on Monday. The issue was raised during a three-way call with the President of the Philippines, which also included discussions about China's "dangerous and unlawful" behavior in the region, as stated by the White House.
Citing national security concerns, Biden nixed Nippon Steel's $14.9 billion acquisition of US Steel earlier this month, irking close ally Japan where the United States 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," Ishiba told reporters after the call on Monday.
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 its struggling US rival, but opponents warned the Japanese group would slash jobs despite its assurances to the contrary.
The takeover, which was announced in 2023, came in the run-up to last year's US presidential election and proved a political flashpoint.
US Steel is based in the swing state of Pennsylvania and both Donald Trump and Kamala Harris opposed the transaction.
Japanese firms invested almost $800 billion in the United States in 2023, more than any other country, and 14.3 percent of the total, according to official US data. US firms are also the biggest outside investors in Japan. Japan is also a close strategic ally for Washington as it seeks to counter China asserting its presence in contested areas of the South China Sea.
Both steel companies said Sunday that US authorities have extended the deadline for unwinding the acquisition until June 18.
Japan's Foreign Minister Takeshi Iwaya, who will attend Trump's inauguration as US president on January 20, said it was important not to undermine the "big picture" of bilateral ties.
Iwaya also said that while in Washington he would seek talks with Marco Rubio, slated to be Trump's Secretary of State, and to lay the groundwork for a meeting between Ishiba and Trump.
