A coalition of business organizations has raised concerns about potential political interference in the review of Nippon Steel’s proposed acquisition of US Steel, warning that such actions could harm the US economy and investment climate.
In a letter addressed to Treasury Secretary Janet Yellen on Wednesday, the groups cautioned that the Committee on Foreign Investment in the United States (CFIUS), which is reviewing the $15 billion deal, is being influenced by political agendas.
The business groups, including the US Chamber of Commerce and the Global Business Alliance, emphasized that CFIUS’s role is to assess national security risks, not serve as a platform for political posturing. They expressed fears that if politics overtakes the process, it could deter international investments in the US.
This acquisition has faced significant opposition, with both current presidential candidates and lawmakers from both parties denouncing it as a threat to national security. Concerns include potential risks tied to the import of cheap steel from China and potential harm to the domestic steel industry.
The deal’s future is uncertain as CFIUS raised national security concerns in letters sent to both companies, and Nippon Steel’s vice chair is reportedly making a last-minute appeal to US officials.
US Steel’s CEO David Burritt has warned that failure to approve the deal could force the company to downsize and relocate its headquarters, citing the financial support and investments promised by Nippon Steel. However, lawmakers, including Senators Bob Casey and John Fetterman of Pennsylvania, oppose the deal, arguing it could undermine American industrial capacity.
With input from the New York Times and the Hill.
