Welcome to NHK Newsline. I'm Gene Otani in Tokyo.
Biden released a statement on Friday saying the two firms should drop the planned acquisition within 30 days. He says there is credible evidence to believe Nippon Steel might take action that threatens to impair the national security of the United States. The Committee on Foreign Investment in the United States had previously reviewed the planned buyout and referred it to the president for a decision. The two steel makers said in a joint statement that they were dismayed by Biden's decision.
They say that Biden's order violates due process and the law governing the Committee on Foreign Investment in the United States. They also said it is shocking and deeply troubling that the US government would treat an ally like Japan this way. The steel makers go on to say that Washington is sending a chilling message. To any company based in an ally country contemplating significant investment in the United States.
US Steel President and CEO David Burrett called Biden's action shameful and corrupt. He added the president had insulted Japan, a vital economic and national security ally, and put American competitiveness at risk. But the leader of the United Steel Workers Union, David McCall, welcomed the decision, saying the union has no doubt it is the right move for its members and national security. Nippon Steel could have to pay a breakup fee of $565 million to U.S. Steel if the deal does not go through. It would also be forced to reassess its strategy in the U.S. market, where demand is expected to remain stable.
Japan's Trade and Industry Minister has reacted to Biden's decision, describing it as unfortunate and incomprehensible.
Mutoyoji says it raises concerns about the future of investments between the countries. He also says the Japanese government will ask the Biden administration to explain the decision in more detail. An expert says President Biden's decisionTo block the deal was political, and that's why the committee, or SIFUS, couldn't reach a consensus. My colleague Yuko Fukushima spoke to Joseph Kraft, who heads an advisory firm specializing in Japan US relations.
In my opinion, it means that there isn't a serious national security issue as the president noted. In my opinion, first of all, Japan is an ally of the US. Secondly, even if Nippon Steel were to wind down production, in a case of national security, the government can deem production to be resumed. So in my opinion, there really isn't a national security issue here. And that is why CFIUS could not come to a consensus.
So what does this rejection of Nippon Steel's buyout mean for Japanese and other foreign companies to invest in US companies in the future?
I don't think this is as big of a deal that some make it out to be. In other words, that it's going to be more difficult in the future for foreign firms to make investments into the US, especially those who are aligned with the US. However,I think Nippon Steel could have taken different measures to alleviate some of that political risk.
The most important thing for Nippon Steel was to get support or agreement from the union workers in this case, but they failed to do that.
So this is a good example for foreign firms of what not to do in terms of politically sensitive transactions.
You were saying that this is all political and it would been better business wise for the US and Japan if this deal went through.
The tragedy here is that this was a tremendously good deal for not only US Steel, but for America as well, I mean. The US Nippon Steel is buying this at a hefty premium. They're making significant capital investments, which is more likely to secure jobs than otherwise.
So I think it would have been a win win for both sides.
Kraft says, in the end, the people who suffer most, will be the US steelworkers. He adds the outcome won't be good for Japan-US relations either.
The foreign ministers of Germany and France have visited Syria almost one month since the collapse of the administration of President Bashar al-Assad. They were representing the European Union and pledged to help the Syrian people build a democratic nation.
Annalena Berbach and Jean-Noel Berreau met for talks with Ahmed al-Sharraa. He heads the group that is leading the interim government.
The European Union will do everything to help that the future will be a free one and a safe one for everybody.
The remark apparently reflects the EU's desire to build relations with the interim government to avoid rising tensions in the Middle East and eliminate the influence of Russia, which backed the Assad administration.
Meanwhile, the Syrian Observatory for Human Rights says clashes between Turkey-backed militants and Kurdish forces have continued in the northern part of the country. The group says more than 200 people, including civilians, have died in the latest round of violence.
Japan's weather authorities are calling on people returning from holidays to brace for traffic disruptions. This comes as snow piles up along the Sea of Japan coast.
The Japan Meteorological Agency says a winter pressure pattern and a strong cold air mass are bringing heavy snow mainly to mountainous areas from northern to western Japan. As of 11 AM on Saturday, 397 centimeters had piled up in Sukayu in the Hakoda Mountain Range in Aomori Prefecture.
Hirosaki City, also in Aomori Prefecture, had 114 centimeters. That's a record high for January. Aomori City had 112 centimeters, which is more than triple the average. 40 centimeters of snow is forecast in Hokkaido and 30 centimeters in the Tohoku region in the 24 hours through Sunday morning. Weather officials are urging people to be prepared for possible avalanches and power outages caused by snow accumulation on electricity cables and trees.
Friday marked 100 days until the World Expo opens in Osaka. To mark the occasion, runners took part in a 10-kilometer race around the site.
The expo will be held on Yumeshima Island in Osaka Bay.
Seven years ago, there was nothing there.
The grand ring encircling much of the site is now almost finished. The Expo will run for six months, starting on April 13. The theme is Designing Future Society for Our Lives. 158 countries and territories are taking part. The national pavilions will be the major attraction. Some of them are nearly ready. Electric buses will take visitors into the site. They will be charged by underground coils that do not need cables.
This charging system is the first of its kind in Japan. Users will realize electric vehicles can be more convenient.
But the expo has its problems. Advance ticket sales have been slow. Organizers were hoping to sell 14 million tickets in advance. But as of December 25, only about half that number had been sold.
Those were the main stories for this hour.
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That's the news this hour. I'm Gene Otani. From all of us here at NHK Newsline to all around the world, thanks very much for joining us.