Nippon Steel's Ambitious Bid Clouded by National Security Concerns

The Committee on Foreign Investment in the United States (CFIUS) has informed the White House of its inability to reach a consensus on the national security risks associated with Nippon Steel's bid for U.S. Steel. The decision now rests with President Joe Biden within a 15-day frame.

The Committee on Foreign Investment in the United States (CFIUS) has given the White House a heads-up about its challenge in reaching a consensus regarding the national security implications of Nippon Steel's bid for U.S. Steel, according to the Washington Post.

The ball is now in President Joe Biden's court, who has just 15 days to make a decision. Both Biden and then President-elect Donald Trump have expressed opposition to the $15 billion transaction announced by Nippon Steel last December. Despite the uncertainty, Nippon Steel reported no updates from CFIUS, while U.S. Steel has not commented on the matter.

According to CFIUS, Nippon Steel's takeover could hamper domestic steel production, constituting a potential security threat. Proposals to mitigate this, such as installing U.S. citizens in top positions at U.S. Steel, have left the committee divided. A $565 million penalty looms for Nippon Steel if the deal falters.

(With inputs from agencies.)