U.S. Panel Divided Over Nippon Steel’s $15 Billion Bid For U.S. Steel

The Committee on Foreign Investment in the United States (CFIUS) informed the White House that it could not reach a consensus on the national security risks posed by Nippon Steel's proposed $15 billion acquisition of US Steel, according to The Washington Post.

If the acquisition of US Steel falls through, Nippon Steel faces a $565 million penalty and has suggested it may pursue legal action against the U.S. government. I Photo: United States Steel Corporation Facebook

The decision now falls to President Joe Biden, who has 15 days to act. Both Biden and President-elect Donald Trump have voiced opposition to the deal, announced in December 2023.

Nippon Steel has proposed appointing U.S. citizens to key management and board positions at US Steel to mitigate security concerns, but CFIUS remains divided on whether these measures suffice.

The deal is critical to Nippon Steel’s plan to expand its global steel production capacity from 65 million metric tons (MMT) to 85 MMT annually and eventually surpass 100 MMT.

If the acquisition falls through, Nippon Steel faces a $565 million penalty and has suggested it may pursue legal action against the U.S. government. With the deal’s year-end deadline looming, both Nippon Steel and US Steel have yet to comment on the panel’s decision.