The Committee on Foreign Investment in the US (CFIUS) has failed to reach a consensus regarding the proposed $15 billion takeover of US Steel by Japan's Nippon Steel, leading to a critical decision for President Joe Biden. With the panel unable to agree on potential national security risks, Biden now has 15 days to either approve the acquisition or extend the decision timeline.
Biden has previously expressed opposition to the deal during his re-election campaign, emphasizing the importance of maintaining strong American steel companies. The takeover would see US Steel operate as a subsidiary of Nippon Steel while retaining its name and headquarters in Pittsburgh, making the combined entity one of the largest steel producers globally.
Both US Steel and Nippon Steel have urged Biden to permit the acquisition, arguing that it would enhance national and economic security through increased investment in manufacturing. They assert that the collaboration would help counter competitive threats from China.
However, the United Steelworkers labor union has voiced strong opposition, claiming the deal prioritizes corporate interests over American workers and could jeopardize the domestic steel industry's future. Union President David McCall criticized the transaction as an example of corporate greed.
This situation has also raised concerns regarding US-Japan relations, with Japanese Prime Minister Shigeru Ishiba previously appealing to Biden to approve the deal to preserve diplomatic ties.