Nippon Steel's $14.9 Billion Gamble: A Merger in Peril

Nippon Steel's bid to acquire U.S. Steel for $14.9 billion faces strong opposition due to national security concerns. Despite multiple proposals and meetings with U.S. officials, the Committee on Foreign Investment in the U.S. remains undecided, with President Biden possibly set to intervene.

Nippon Steel's $14.9 billion acquisition of U.S. Steel faces significant hurdles as national security concerns stall the approval process. A letter obtained by Reuters indicates that President Biden may ultimately block the merger due to unresolved security risks.

The Committee on Foreign Investment in the United States (CFIUS) is responsible for assessing such deals for potential national security threats. Despite extensive negotiations, including three revamped proposals, the committee remains divided.

With a deadline of December 23 looming, the possibility of Biden taking action to suspend or prohibit the transaction increases. U.S. Steel argues that Nippon Steel's investment would secure its future, but opposition remains strong.

(With inputs from agencies.)