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 mixed recommendations to President Donald Trump regarding Nippon Steel’s acquisition of U.S. Steel, with the majority of members believing that potential security concerns from the deal could be mitigated, according to a White House official.
On Wednesday, the Committee on Foreign Investment in the U.S. provided a recommendation to President Trump regarding the potential national security impacts of 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 promised investment in U.S. Steel to $14 billion in an eleventh-hour attempt 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 also mentioned, “The CFIUS agencies did not all agree with the recommendations, however, most think that potential risks could probably be managed through appropriate measures.” They chose to remain anonymous as the topic had yet to become public knowledge.
Nippon Steel chose not to comment. U.S. Steel has not yet responded to a request for commentary.
The suggestion aligns with an executive order issued by Trump last month, directing CFIUS to specify if the steps suggested by the companies address the national security concerns earlier flagged by the committee.
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 over national security.
The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view.
it was reported this week that should the merger be approved, Nippon Steel has stated it will invest $14 billion in U.S. Steel’s operations, with as much as $4 billion allocated for constructing a new steel mill.
(Reported by Alexandra Alper; Edited by Leslie Adler and David Gregorio)