Biden Poised to Block Nippon Steel's Bid Amid National Security Concerns

Nippon Steel's $14.9 billion bid for U.S. Steel faces likely rejection due to national security concerns. Despite extensive negotiations, the Committee on Foreign Investment in the United States remains unconvinced about proposed mitigation measures, making it increasingly probable that President Biden will block the deal.

A $14.9 billion bid by Nippon Steel to acquire U.S. Steel appears on the brink of collapse due to national security concerns, as revealed in a letter seen by Reuters. Despite numerous meetings and proposals, the powerful Committee on Foreign Investment in the United States (CFIUS) has not granted approval.

As the December 23 deadline approaches, disputes within CFIUS may push the decision to President Biden, who may choose to block the deal. Nippon Steel has made three proposals to address security risks, but consensus among agencies has not been reached.

The proposed merger has faced resistance at the highest levels, with significant opposition stemming from national security implications and concerns about the merger's impact on critical infrastructure.

(With inputs from agencies.)