Biden will decide on US Steel acquisition after influential panel fails to reach consensus
A powerful government panel has failed to reach consensus on the possible national security risks of a nearly $15 billion proposed deal for Nippon Steel of Japan to purchase U.S. Steel
WASHINGTON — A powerful government panel on Monday failed to reach consensus on the possible national security risks of a nearly $15 billion proposed deal for Nippon Steel of Japan to purchase U.S. Steel, leaving a decision to President Joe Biden, a longtime opponent of the deal.
The Committee on Foreign Investment in the United States, known as CFIUS, sent its long-awaited report on the merger to Biden, who formally came out against the deal in March of last year and now has 15 days to reach a final decision, the White House said. A U.S. official familiar with the matter, speaking on condition of anonymity to discuss the private report, said some federal agencies represented on the panel were skeptical that allowing a Japanese company to buy an American-owned steelmaker would create national security risks.
Both Biden and President-elect Donald Trump courted unionized workers at U.S. Steel and vowed to block the acquisition amid concerns about foreign ownership of a flagship American company. The economic risk, however, is that Nippon Steel also has the financial resources to invest in the mills and upgrade them, possibly helping to preserve steel production within the United States.
The interagency committee reviews such deals with an eye toward potential national security risks. Monday was the deadline to approve the deal, recommend that Biden block it or extend the review process.
The Washington Post earlier reported CFIUS' submission of its report.
Under the terms of the approximately $14.9 billion all-cash deal, U.S. Steel would
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