A planned $15 billion purchase of U.S. Steel by Nippon Steel has been referred to President Biden after a government review board failed to reach a consensus on the potential impact on national security.
The Committee on Foreign Investment in the United States (CFIUS) had initially blocked the deal, citing concerns over Japan’s largest steelmaker’s ties to China and its implications for US economic security. However, Nippon Steel has made significant commitments, including $2.7 billion of investments in U.S. Steel facilities, aimed at addressing these concerns.
Nippon Steel claims that the deal will enhance US national and economic security through investment in manufacturing and innovation. The company emphasizes its binding legal agreement with the US government, ensuring the fulfillment of these commitments.
President Biden is expected to review the CFIUS evaluation and make a final decision on the matter within 15 days. Nippon Steel urges him to take action after 2.7 billion-dollar investments were made to grow American jobs, strengthen the steel industry, and enhance national security.
Source: https://www.axios.com/2024/12/24/nippon-steel-us-biden-cfius