U.S. Panel Divided over Nippon Steel Bid for US Steel but Path Forward Seen, Says Official
Reuters file photo
Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024.
WASHINGTON (Reuters) — A national security panel was divided in its recommendation to President Donald Trump on Nippon Steel 5401.T's bid for U.S. Steel X.N but most panel members believe any security risks posed by the deal can be addressed, a White House official said.
The Committee on Foreign Investment in the U.S. on Wednesday submitted a recommendation to Trump about the national security implications of the merger, Reuters reported, as directed by Trump in an executive order signed last month.
But key details had not emerged until now about the contents of the document, submitted after Japan's Nippon Steel supercharged its pledged investment in U.S. Steel to $14 billion in a last-ditch bid for approval, as reported by Reuters.
We've received the report and the President will review the recommendations of each agency to determine if additional action on this matter is necessary, the White House official said in a statement. 'CFIUS agencies were not unanimous in their recommendation, but the majority believe any risks can likely be addressed through mitigation,' the person added, declining to be named because the matter was not public.
Nippon Steel declined to comment. U.S. Steel did not immediately respond to a request for comment.
The recommendation complies with an executive order signed by Trump last month, which tasked CFIUS with outlining whether any measures proposed by the companies assuage the national security risks previously identified by the committee.
The April directive also asked for a statement describing the position of each agency that is a member of CFIUS as well as the reasons behind it.
Trump will now have 15 days to decide the fate of the transaction, although the timeline could slip.
Following a previous CFIUS-led review, former President Joe Biden blocked the deal in January on national security grounds.
The companies sued, arguing they did not receive a fair review process. The Biden White House rejected that view.
Reuters reported this week that if the merger is approved, Nippon Steel has said it would invest $14 billion into U.S. Steel's operations including up to $4 billion in a new steel mill.
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