Japan’s Nippon Steel is proposing granting the U.S. government veto power over any cuts to U.S. Steel to clear the way for its acquisition of the American company. The proposal comes after the Committee on Foreign Investment in the United States (CFIUS) referred the decision to Joe Biden to either approve or block the merger last week.
Biden, who leaves office on January 20, 2025, has until January 7 to make a decision. Failure to act by this deadline would result in automatic approval of the merger.
A White House spokesman confirmed the receipt of CFIUS’s evaluation, stating that it is under presidential review. The Washington Post previously reported that Nippon Steel has committed to a decade-long assurance against production cuts at U.S. Steel’s domestic facilities, contingent upon approval from a Treasury-led panel.
President-elect Donald J. Trump has repeatedly pledged to block the deal upon assuming office if Biden does not act. “I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan. Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!” President-elect Trump wrote in a post on Truth Social last December. He added: “As President, I will block this deal from happening. Buyer Beware!!!”
The National Pulse reported in March last year that Biden opposes the foreign takeover of U.S. Steel. However, now a lame-duck president, some are concerned that Biden’s pledge may have just been an election ploy and that he now intends to take no action to stop Nippon’s takeover of the American company.