US President Joe Biden’s administration is divided over the $15 billion acquisition of Pittsburgh-based steelmaker US Steel by Nippon Steel, with some officials concluding that the deal poses no national security risks despite Biden’s opposition. The Committee on Foreign Investment in the US (Cfius) has issued a review, and while Biden will likely block the deal regardless, a Cfius conclusion that it presents no risks could force him to find an alternative mechanism to stop the transaction.
Critics claim Biden made his stance on the deal for political reasons ahead of the 2024 presidential election, where Pennsylvania played a crucial role. President-elect Donald Trump also opposes the deal and has vowed to block it immediately upon returning to the White House in January. US trade representative Katherine Tai and several senior officials have expressed concerns about the deal.
The Pentagon, Treasury, and state department have concluded that Nippon Steel’s acquisition of US Steel poses no national security risks, despite Biden’s insistence otherwise. However, the National Security Council stated that Biden will continue to review the Cfius process and has not received a recommendation yet.
Nippon Steel is pushing to rescue the deal, offering each employee a $5,000 closing bonus if it goes through. The US Steelworkers union, which opposes the deal, has called on Biden to formally reject the transaction, citing concerns about worker rights. Japanese Prime Minister Shigeru Ishida has urged Biden to approve the deal, taking a more assertive public stance than his predecessor.
A Cfius conclusion that the deal presents no risks would likely force Biden to find an alternative mechanism to block the transaction, rather than allowing it to proceed as planned. The deal’s fate remains uncertain ahead of a year-end deadline.
Source: https://www.ft.com/content/c86cebe1-6ece-42cc-9d89-65d96bbd69c6