Nippon Steel Resubmits US Steel Takeover Bid, Buying Time Amidst Political Firestorm
Nippon Steel, Japan’s largest steelmaker, is re-filing its application for a national security review of its $15 billion takeover bid for US Steel, CNN reports, citing sources familiar with the matter.
The move grants the companies an additional 90 days to finalize the acquisition, effectively resetting the clock amidst mounting political opposition.
The surprise development comes as the deal faces major headwinds, with President Joe Biden, Republican presidential nominee Donald Trump, and Democratic nominee Vice President Kamala Harris all publicly expressing their disapproval. The Committee on Foreign Investment in the United States (CFIUS), which reviews deals involving US entities, has been scrutinizing the takeover for months on national security grounds.
With the White House signaling its intention to block the deal, and CFIUS officials seeking to operate outside political pressures, extending the review timeline appeared to be the most favorable outcome, sources revealed.
While Nippon Steel declined to comment, the move potentially keeps the controversial deal alive. However, the political backlash remains strong, with several Rust Belt Democrats, including Sen. Sherrod Brown of Ohio and Sen. John Fetterman of Pennsylvania, voicing their opposition. The United Steelworkers union, which has endorsed Harris for president, has also been a vocal critic of the acquisition.
US Steel has warned of potential job losses and mill closures without Nippon Steel’s support. Meanwhile, Japanese Prime Minister Fumio Kishida has stated that legal reviews will determine the deal’s outcome.
Several business groups have voiced concerns over the politicization of the CFIUS process, which was designed to evaluate national security risks objectively.
US Steel, which received an unsolicited $7 billion takeover offer from Cleveland Cliffs earlier this year, ultimately opted for the $14.9 billion deal with Nippon Steel.
