Steel Tensions: Nippon Steel Challenges White House Influence

Nippon Steel accuses the White House of undue influence in a national security review of its $14.9 billion bid for U.S. Steel. As President Biden opposes the deal amid political pressures, legal action is threatened if the merger is blocked. The transaction's fate remains uncertain.

Nippon Steel has alleged that the White House exerted 'impermissible undue influence' on the national security review of its $14.9 billion acquisition bid for U.S. Steel, threatening legal action if prohibited. This accusation was revealed in a December 17 letter to the Committee on Foreign Investment in the United States (CFIUS), observed by Reuters.

The CFIUS, tasked with reviewing foreign acquisitions for national security risks, faces a Monday deadline to approve, extend, or recommend President Joe Biden halt the deal. An anticipated government shutdown could pause proceedings, according to CFIUS attorneys. Last weekend, CFIUS primed Biden to potentially block the merger, citing unresolved security risks in a 29-page document.

Nippon Steel and U.S. Steel countered CFIUS's security claims, asserting Biden improperly influenced the review, possibly to appease United Steelworkers President David McCall. The high-stakes deal, which Biden opposes to keep U.S. Steel American-owned, faces significant political challenges.

(With inputs from agencies.)