Battle Over Steel: Nippon's $15 Billion Gamble

A review is underway for Nippon Steel's $15 billion acquisition of U.S. Steel, with President Biden's final decision pending. Despite political and national security concerns, Nippon is striving to secure the deal. Both companies prepare for potential litigation in case of a regulatory block.

The $15 billion bid by Nippon Steel for U.S. Steel remains under national security review, as President Biden awaits its outcome before deciding on a potential block, the White House reported. Shares of U.S. Steel saw a significant drop following speculations about the deal's demise.

CFIUS, responsible for evaluating foreign investments for national security threats, is set to deliver its decision by December 22. White House spokesperson Saloni Sharma reiterated the administration's preference for U.S. Steel to remain domestically owned. The process remains active without official recommendations yet.

Nippon Steel criticized political influence on security interests but expressed faith in the U.S. legal system. Meanwhile, U.S. Steel advocates for the transaction's approval, highlighting its community and economic benefits. Nippon has committed to maintaining U.S. jobs and preserving trade practices while offering bonuses to employees should the deal proceed.

(With inputs from agencies.)