US President Joe Biden has been referred to with a decision on Nippon Steel’s $15 billion bid for US Steel after the Committee on Foreign Investment in the US (CFIUS) failed to reach a consensus.
Nippon Steel, which aims to raise its global steel production capacity, needs US Steel to achieve this goal. The deal has faced opposition from both Biden and Trump, who have expressed concerns over national security risks.
If Biden decides not to block the deal within 15 days, it would get an unexpected greenlight. If the deal collapses, Nippon Steel must pay a $565 million penalty to US Steel.
The CFIUS report raised allegedly unresolved national security risks, but Nippon Steel has countered that its investments will actually shore up US Steel’s output. The companies are now waiting for Biden’s decision, with hopes that he will approve the deal to enhance US steel production and address supply shortages in critical projects.
Source: https://www.cnbc.com/2024/12/24