Nippon Steel's bid for U.S. Steel referred to President Biden due to national security risks

From Investing.com: 2024-12-23 22:05:35

Nippon Steel’s $15 billion bid for U.S. Steel has been referred to President Joe Biden, giving him 15 days to decide on a deal opposed by both him and President-elect Donald Trump. The Committee on Foreign Investment in the United States (CFIUS) cited national security risks in the referral.

Nippon Steel has urged Biden to consider the significant commitments made to address any concerns raised and grow U.S. Steel. The deal, essential for Nippon Steel’s global expansion, has faced opposition from the United Steelworkers union and concerns about importing steel into the U.S. from international mills.

Nippon Steel aims to increase its global steel production capacity with U.S. Steel, raising it to 85 million metric tons per year from 65 million tons. The deal is crucial for Nippon Steel’s future growth plans, with the U.S. being the only developed nation where domestic steel demand is increasing.

The Japanese steelmaker faces a $565 million penalty to U.S. Steel if the deal collapses, potentially leading to legal action against the U.S. government. Japanese Prime Minister Shigeru Ishiba has written to Biden in support of the acquisition, highlighting the benefits for U.S. national and economic security.



Read more at Investing.com: Nippon Steel’s U.S. Steel bid referred to President Biden for final decision By Reuters