A key US government review board has referred the proposed $15 billion acquisition of US Steel by Japan’s Nippon Steel to President Joe Biden for a final decision. The move comes after the Committee on Foreign Investment in the United States (CFIUS) was unable to reach a consensus on the national security implications of the deal, which would make US Steel a subsidiary of Nippon Steel.
The White House confirmed that President Biden has received the CFIUS evaluation and will now have 15 days to make a final decision. White House spokesperson Saloni Sharma stated that Biden will review the evaluation before taking any action.
Nippon Steel and US Steel have both lobbied for the deal, emphasizing that the acquisition would benefit the US economy by strengthening the steel industry and creating jobs. The companies have promised substantial investments, including over $2.7 billion in US Steel facilities, as well as commitments to protect American jobs and bolster national security through a stronger US steel sector.
However, the proposed sale has faced significant opposition. President Biden and former President Donald Trump have both expressed their concerns about the deal, with Biden previously stating that it is essential for US Steel to remain domestically owned. Additionally, the United Steelworkers union has voiced strong objections, questioning whether Nippon Steel would uphold union protections, safeguard jobs, and ensure the integrity of US steel production.
The CFIUS evaluation highlighted concerns that allowing a foreign entity like Nippon Steel to purchase an iconic American company could lead to a decline in domestic steel production, posing potential national security risks. While Nippon Steel has made commitments to address these concerns, including appointing US citizens to key leadership positions, some members of the committee remain skeptical about whether these measures would be enough.
Axios, the Associated Press, the New York Times, and the Washington Post contributed to this report.
