The Committee on Foreign Investment in the United States (CFIUS) has delayed its decision on Nippon Steel Corp’s $14.1 billion bid for United States Steel Corp until after the presidential election. The companies will be allowed to refile their application, giving them another chance to secure approval.
This decision comes after CFIUS raised concerns on August 31 about the potential risks to the U.S. steel supply chain, a critical component for numerous industries. The panel needs more time to thoroughly assess the national security implications and engage with all parties involved. The refiling triggers a new 90-day review period.
The potential collapse of the deal in late August sparked significant support from various business groups, including the U.S. Chamber of Commerce, who feared political interference. Vice President Kamala Harris voiced her support for U.S. Steel to remain under American ownership, while former President Donald Trump has vowed to block the deal if he is re-elected.
The deal has faced opposition from both President Biden’s administration and former President Trump due to national security and supply chain concerns. U.S. Steel CEO David Burritt remains optimistic, arguing that the merger would benefit shareholders and employees while strengthening the U.S.’s ability to compete with China. However, the United Steelworkers union has strongly opposed the deal, expressing concerns about foreign ownership of the Pittsburgh-based company. Their resistance adds another layer of complexity to the already contentious acquisition.
The postponement of the CFIUS decision highlights the significant political and economic tensions surrounding this deal. The outcome will have a major impact on the future of the American steel industry and its ability to maintain a competitive edge globally.
