Nippon Steel is considering legal action against the U.S. government after President Joe Biden blocked its multibillion-dollar bid to acquire US Steel, marking a significant setback for the Japanese company’s expansion plans in the U.S. steel industry. The $14.3 billion acquisition, announced over a year ago, was blocked last week on Friday on national security grounds, with Biden citing concerns about protecting U.S. supply chains and industrial interests.

Tadashi Imai, the president of Nippon Steel, confirmed the company’s dissatisfaction with the decision, stating, “We are considering this as an important option.” Imai added that the company was looking into potential legal responses, suggesting that action could be taken swiftly. "The review process to date and the US government’s decision is not a very proper review. Our company cannot allow this to continue," he said. Nippon Steel's leadership is now exploring all options to contest the decision.

The Committee for Foreign Investment in the United States (CFIUS), which is responsible for reviewing foreign investments in U.S. companies, was unable to reach a consensus on whether the deal posed a national security threat. As a result, the decision was left to President Biden, who ultimately chose to block the transaction.

The deal to acquire US Steel has been a contentious issue in U.S. politics since it was first announced. Bipartisan opposition emerged against the deal, with concerns over foreign control of an iconic U.S. industrial company that was once a symbol of American manufacturing power. Unions, particularly the United Steelworkers (USW), voiced strong opposition to the acquisition, applauding Biden’s decision to block the sale. USW International President David McCall said that the decision was "the right move for our members and our national security," emphasizing that US Steel’s financial health indicated it could remain a strong entity without foreign intervention.

However, not all industry players agree with the decision. US Steel and Nippon Steel had argued that the acquisition was crucial to securing the investment necessary to modernize US Steel’s aging operations. US Steel specifically highlighted the $2.7 billion in planned investments from Nippon, which it said were critical to maintaining its competitiveness. US Steel President and CEO David Burritt criticized the government’s decision, calling it “shameful and corrupt,” arguing that the failure of the deal could result in job losses and potentially harm the future of US Steel.

Nippon Steel's potential legal challenge comes at a time when foreign investment in U.S. companies, particularly in key industries like steel, is under greater scrutiny. The Biden administration's intervention in the deal underscores its broader stance on protecting national security and domestic industries from foreign influence, even at the cost of international business deals.