The national security review of Nippon Steel’s USD 15 bln bid for U.S. Steel is ongoing, with President Joe Biden awaiting the Committee on Foreign Investment in the United States (CFIUS) recommendation, expected by December 22 or 23, before making a final decision. While Biden has signaled opposition to the deal, he has not pledged to block it outright.
Bloomberg reports that Biden is likely to reject the bid once the CFIUS decision reaches him. The proposed takeover, announced last year, has faced resistance from the administration, which extended the foreign security review period. President-elect Donald Trump has reiterated his commitment to blocking the deal, calling it detrimental to U.S. interests.
Nippon Steel criticized the political influence on the process, stating it undermines true national security considerations. The company expressed confidence in the U.S. legal system and pledged to work with U.S. Steel to achieve a fair outcome if necessary.
U.S. Steel continues to advocate for the transaction, emphasizing its clear benefits to communities, employees, customers, and investors, and urging adherence to the rule of law. The company warned that failure to approve the deal could result in relocating its headquarters out of Pennsylvania and shutting down some operations.
Nippon Steel announced in December 2023 an agreement to acquire U.S. Steel for USD 55 per share, with a total enterprise value of USD 14.9 bln, including assumed debt.
