US-Canada Panel Split on Nippon Steel’s Bid for US Steel; Official Sees Path Forward
By Alexandra Alper
WASHINGTON—A national security committee presented conflicting recommendations to President Donald Trump regarding Nippon Steel’s acquisition of U.S. Steel, with most members deeming that potential security concerns from the deal could be mitigated. A representative from the White House stated this information.
On Wednesday, the Committee on Foreign Investment in the U.S. provided a recommendation to President Trump regarding the potential impacts on national security from the proposed merger, as instructed by Trump through an executive order issued last month.
However, crucial information regarding the document’s content was previously undisclosed. This submission came after Japan’s Nippon Steel significantly increased its proposed investment in U.S. Steel to $14 billion in a final effort to gain approval, according to reports.
“The report has been received, and the President will examine the suggestions from every agency to decide whether further steps regarding this issue are required,” stated a representative from the White House. The individual continued, noting that although CFIUS agencies did not all agree with the recommendations, most felt that potential risks could probably be managed through specific measures.” They chose to remain anonymous since the topic had yet to become public knowledge.
Nippon Steel chose not to comment. U.S. Steel has not yet responded to requests for commentary.
The suggestion aligns with an executive order issued by Trump last month, directing CFIUS to specify whether any steps suggested by the companies mitigate the national security concerns previously highlighted by the panel.
The directive issued in April requested a statement outlining the stance of every agency that is part of CFIUS along with the rationale supporting their positions.
Trump will currently have 15 days to determine the outcome of the transaction, though this timeframe might extend.
After a prior examination conducted by CFIUS, ex-President Joe Biden prohibited the transaction in January due to concerns related to national security.
The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view.
mentioned this week that should the merger be approved, Nippon Steel has stated it will commit $14 billion to U.S. Steel’s operations, with as much as $4 billion slated for a new steel mill.
(Reported by Alexandra Alper; Edited by Leslie Adler and David Gregorio)