The Biden administration has extended the review period for Nippon Steel’s proposed $15 billion acquisition of US Steel, allowing the Japanese company to resubmit its filing with the Committee on Foreign Investment in the United States (CFIUS).
This extension provides an additional 90 days for CFIUS to assess the national security implications of the deal, which has faced bipartisan opposition.
The extension delays the final decision on the acquisition until after the upcoming presidential election, a move seen as addressing political sensitivities in swing states like Pennsylvania, where US Steel is headquartered. CFIUS, which evaluates foreign investments for potential risks to US security, is using the extra time to ensure it fully understands the potential impact on critical supply chains and national security.
Despite concerns from both Democrats and Republicans, US Steel’s CEO David Burritt expressed optimism that the deal will proceed, arguing that the merger would bolster both economic and national security by strengthening competition against China in global steel markets. Burritt emphasized that Japan, a key US ally, would bring valuable expertise and investment to US Steel’s operations.
However, President Biden, Vice President Kamala Harris, and former President Donald Trump have all publicly opposed the deal, maintaining that US Steel should remain American-owned. The United Steelworkers union has also voiced opposition, fearing negative impacts on workers’ pensions and job security.
The Washington Post, Bloomberg, the New York Times, and Financial Times contributed to this report.
