Japan’s Nippon Steel has proposed giving the US government veto power over potential cuts to US Steel’s production capacity as part of its bid to secure President Joe Biden’s approval for acquiring American steelmaker US Steel. A proposal made by Nippon Steel includes a 10-year commitment not to reduce domestic mill production unless approved by a Treasury-led review panel.
The Committee on Foreign Investment in the United States (CFIUS) referred the decision to Biden last week, and he must decide on the deal by January 7. If no action is taken, the merger will automatically approve. The White House confirmed that Biden received the CFIUS evaluation and will review it.
This proposal has led to a surge in US Steel shares, which rose 9.5% after news of the proposal broke. However, US Steel and Nippon Steel have yet to comment on the matter.
Source: https://www.cnbc.com/2024/12/31/nippon-steel-offers-us-government-veto-power-in-bid-for-us-steel-approval-source-tells-reuters-.html