The U.S. government has reached a pivotal moment in Nippon Steel’s $15 billion bid for U.S. Steel, as the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on the deal’s potential national security risks.
The committee, an interagency body led by the Treasury Department, has informed the White House that it cannot reach a consensus on the national security implications of Nippon Steel’s proposed $15 billion acquisition of U.S. Steel, according to a report by The Washington Post.
The decision now rests with President Joe Biden, who has 15 days to decide on the next steps. Two individuals familiar with the proceedings reported that the committee’s inability to reach an agreement followed months of review and a final evaluation delivered late Monday.
Nippon Steel first announced its intention to acquire U.S. Steel in December 2023. Under the terms of the deal, U.S. Steel would retain its name and Pittsburgh, Pennsylvania-based headquarters while operating as a subsidiary of the Japanese steelmaker.
However, President Joe Biden and President-elect Donald Trump have expressed concerns about the proposed acquisition.
CFIUS has reportedly highlighted the potential risks of reduced domestic steel production, stating that Nippon Steel’s ownership could pose “a national security risk,” according to The Washington Post.
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