On December 23, United States Steel Corporation (US Steel) has stated that the Committee on Foreign Investment in the United States (CFIUS) was unable to reach a consensus on the acquisition of the company by Japanese steelmaker Nippon Steel Corporation, leaving the decision to current president Joe Biden. The president has 15 days to act.
According to the company’s statement, the acquisition enhances US’ national and economic security through investment in manufacturing and innovation and forges an alliance in steel industry to combat the competitive threat from China. Hoping that the president will approve the transaction, US Steel reminded that Nippon Steel has made huge commitments, including over $2.7 billion investments at its plants.
Nippon Steel has revised estimated closing date to the first quarter of 2025 from the fourth quarter of 2024 forecasted previously.
Meanwhile, Biden plans to prevent Japanese steelmaker Nippon Steel from acquiring US Steel before he hands over his seat to president-elect Donald Trump, as SteelOrbis previously reported. Since the beginning, Biden’s position is that it is vital for US Steel to be domestically owned and operated.