Biden set to decide fate of U.S. Steel deal
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President Biden in Washington, D.C., earlier this month. Photo: Kevin Dietsch/Getty Images
A government review board was unable to reach a consensus in Nippon Steel's planned $15 billion purchase of U.S. Steel and has referred the matter to President Biden, the two companies said on Monday night.
The big picture: The Washington Post first reported on Monday's deadlock by the Committee on Foreign Investment in the United States (CFIUS) over the potential impact on national security if U.S. Steel were sold to Japan's largest steelmaker.
State of play: White House spokesperson Saloni Sharma confirmed in a media statement that they had "received the CFIUS evaluation and the President will review it."
- Both Biden and President-elect Trump have signaled their opposition to the purchase of the Pennsylvania-based U.S. Steel, which the United Steelworkers (USW) union is also against.
- Nippon Steel urged Biden late Monday to reflect during the 15-day period that he has to make a final decision "on the great lengths that we have gone to address any national security concerns that have been raised."
What they're saying: U. S. Steel said in a statement late Monday that the deal "enhances U.S. national and economic security through investment in manufacturing and innovation" by a company "based in one of the United States' closest allies."
- The emailed statement said the proposal "forges an alliance in steel to combat the competitive threat from China" and the sale should be approved on its merits and it should be a model for "friendshoring" investment.
- "Nippon Steel has made extraordinary commitments, including over $2.7 billion of investments in our USW facilities, that will be in a binding legal agreement enforceable by the U.S. government, to ensure these virtues are realized," the statement added.
- "It is our hope that President Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security."
Nippon Steel wants Biden to reflect on the "significant commitments we have made to grow U. S. Steel, protect American jobs, and strengthen the entire American steel industry, which will enhance American national security," said a spokesperson for the world's fourth-largest steelmaker.
- "We are confident that our transaction should and will be approved if it is fairly evaluated on its merits," added the spokesperson over email.
- Representatives for the CFIUS and Biden did not immediately respond to Axios' request for comment.
Go deeper: Inside U.S. Steel's decision to be acquired by Japan's Nippon Steel
Editor's note: This article has been updated with new details throughout.
