Nippon Steel's Struggle: National Security Concerns Stall $14.9 Billion U.S. Steel Bid

Nippon Steel's $14.9 billion bid for U.S. Steel is under scrutiny by the Committee on Foreign Investment in the United States (CFIUS) due to national security concerns. Four meetings, multiple proposals, and extensive lobbying have yet to overcome opposition, specifically from U.S. President Joe Biden, ahead of a looming decision deadline.

The proposed $14.9 billion acquisition of U.S. Steel by Nippon Steel is teetering on the edge of collapse, amid mounting national security concerns reviewed by a powerful panel. U.S. President Joe Biden, long an opponent of the merger, may ultimately decide its fate as the restrictive review deadline approaches.

A letter obtained by Reuters reveals a history of significant efforts by Nippon Steel to secure approval, including multiple high-level discussions and proposals aimed at neutralizing skepticism. However, internal discord among the review panel members could lead them to defer the decisive action to President Biden.

Despite prolonged negotiations and investment pledges, the approval of Nippon Steel's bid remains unlikely, with concerns on potential impacts on critical U.S. steel supply driving the resistance. The decision, expected post-election, will test the political waters and gauge economic-security dynamics.

(With inputs from agencies.)