Biden to block $14.9 billion steel deal in huge blow to key U.S. ally

President Joe Biden will block Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel, according to reports, in a blow to the key U.S. ally. 

Japan's play on a major American industry caused a massive political controversy ahead of the November presidential election, particularly in the battleground state of Pennsylvania, where U.S. Steel is based.

Biden, Kamala Harris and Donald Trump have all voiced opposition to the deal.

National Security Council spokesman John Kirby said he could not confirm the report. He noted there is a review 'process' when it comes to deals like this that is still ongoing. 

But, Kirby, added: 'The President has been very consistent on this. He believes that American steel companies ought to be American owned.'

Kirby didn't, however, address a question on whether Biden's blocking of the deal will harm relations with Japan, who has been in a key ally in Washington's attempts to circumvent China's growing economic power and influence. 

The decision would be a stunning rejection of a deal proposed by Japan, a U.S. ally, noted The Washington Post, which broke the story. 

The deal has been under investigation by the Committee on Foreign Investment in the United States (CFIUS).

The CFIUS review is not complete but Biden is prepared to kill the sale if it reaches his desk, Bloomberg News reported.

A decision could be made as soon as this week. 

And, if Biden blocks it, Nippon can sue.

Nippon officials have pointed out that the US shouldn’t reject a bid from a company based in an allied country, particularly as the deal can create a joint entity that is able to compete with China, which is investing in infrastructure around the world.

The deal would have created the third-largest global steelmaker. 

It's unclear what will happen to US Steel if the deal is blocked. 

The company warned Wednesday that failing to complete the deal would imperil thousands of jobs and potentially even relocate its headquarters from Pittsburgh.