Japan’s Nippon Steel has proposed giving the US government veto power over any potential cuts to US Steel production capacity as part of its bid to secure President Joe Biden’s approval for acquiring the American steelmaker. The proposal was made in response to a Committee on Foreign Investment in the United States (CFIUS) referral last week, which required Biden to review and decide on the deal by January 7.
Under the proposed agreement, Nippon Steel has pledged a 10-year commitment not to reduce production capacity at US Steel’s domestic mills unless approved by a Treasury-led review panel. The move aims to alleviate concerns about job losses and economic disruption in the US steel industry.
The White House has confirmed that Biden will review the proposal, but no official decision has been made. If Biden fails to act before January 7, the merger would automatically gain approval.
Source: https://www.reuters.com/markets/commodities/nippon-steel-offers-us-government-veto-power-bid-us-steel-approval-wapo-reports-2024-12-31