Investing.com– Shares of Nippon Steel Corp (TYO:5401) fell in Tokyo trade on Monday after U.S. President Joe Biden struck down the firm’s proposed takeover of U.S. Steel (NYSE:X) on concerns over national security.
Nippon Steel fell 2.2% to 3,114.0 yen, while the broader Nikkei 225 index lost 0.4%.
Biden had last week blocked the nearly $15 billion takeover, citing concerns over the deal potentially compromising U.S. steel supplies.
Biden’s decision comes after the Committee on Foreign Investment in the United States deferred the final decision on the merger to the President.
Nippon Steel and U.S. Steel slammed the President’s decision as “unlawful,” and that they would take action to protect their rights.
Both firms had agreed to the takeover in December 2023. But it was widely opposed by lawmakers, as well as powerful union groups in the U.S., who were concerned that the deal would also result in job cuts.
U.S. Steel shares slid nearly 7% on Friday after Biden’s decision.