Nippon Steel’s $15 billion bid for U.S. Steel has been referred to U.S. President Joe Biden by the Committee on Foreign Investment in the United States (CFIUS), giving him 15 days to block or allow the deal. Biden, who has previously opposed the merger, must decide following CFIUS’s inability to reach consensus over national security concerns.
“We received the CFIUS evaluation and the President will review it,” said White House spokeswoman Saloni Sharma.
CFIUS warned the deal could reduce domestic steel production, posing security risks. Nippon Steel argued it could eliminate these risks by appointing U.S. citizens to key management roles. However, CFIUS remained divided, prompting the referral to Biden.
Nippon Steel, aiming to raise its global steel output from 65 to 85 million metric tons annually with U.S. Steel, has called the acquisition a “once-in-a-lifetime opportunity.” The U.S. remains the only developed nation with rising steel demand and the highest global steel prices.
Critics, including Biden and former President Donald Trump, have opposed the merger, citing potential risks to U.S. steel supply for critical sectors. Union opposition also adds pressure, with the United Steelworkers Union firmly against the deal.
A 90-day CFIUS review in August allowed Nippon Steel to counter concerns, arguing that investments from an allied nation could strengthen U.S. Steel’s production. However, last weekend, CFIUS sent a 29-page letter highlighting unresolved risks, dashing hopes for approval.
Nippon Steel has threatened legal action if Biden blocks the deal, citing “impermissible influence” over the review process. If the deal fails, Nippon Steel must pay a $565 million breakup fee.
The merger, originally announced in December, faces high stakes as both companies aimed to finalize it by 2024’s end. Biden’s decision remains unpredictable, with analysts suggesting it could shape the future of U.S. steel and national security policy.
Also read: Man Arrested for Setting Woman on Fire on NYC Subway, Killing Her
