Nippon Steel and U.S. Steel have taken steps to communicate with U.S. President Joe Biden regarding their planned $15 billion merger, following reports suggesting that he may intervene to halt the deal. The Japanese steelmaker's spokesperson confirmed that a letter signed by Nippon Steel Chief Executive Eiji Hashimoto and U.S. Steel CEO David Burritt, along with other executives, was sent to President Biden.
Despite the lack of specific details about the letter's contents, it is evident that the merger is facing significant challenges. The merger, which involves Japan's largest steelmaker acquiring U.S. Steel, has encountered resistance from various quarters, including President Biden, the United Steel Workers (USW) union, and several members of Congress. The Committee on Foreign Investment in the United States (CFIUS) has highlighted potential national security risks associated with the deal, primarily concerning the supply of steel critical for transportation, infrastructure, construction, and agriculture projects.