Biden Shouldn’t Block the Nippon Steel Deal

President Joe Biden’s administration has backed calls for a review of Nippon Steel Corp.’s $14.1 billion acquisition of United States Steel Corp., which would create the world’s second-biggest steel company. On balance, the US stands to benefit from the deal — so long as it doesn’t pose undue risks to national security.

Although Nippon Steel has promised to honor all existing union contracts, preserve the US Steel name and keep the company’s headquarters in Pittsburgh, the merger has provoked an outcry. Leaders of the United Steelworkers union, which represents many of US Steel’s roughly 23,000 employees, blasted management for not consulting them. Legislators charged that the Japanese company was beholden to a foreign state. Wary of alienating political allies in an election year, the Biden administration has endorsed a national-security review of the deal by the Committee on Foreign Investment in the US. Once launched, the probe will take several months to complete, after which the committee will advise Biden on whether to approve or block the merger.