Nippon Steel and U.S. Steel's $15 Billion Merger Faces Obstacles
Nippon Steel and U.S. Steel have sent a letter to U.S. President Joe Biden regarding their planned $15 billion merger. This comes after reports surfaced that the President was preparing to block the deal. The letter, signed by executives from both companies, aims to address concerns raised by the Biden administration.
The proposed merger has faced opposition from various groups, including the United Steel Workers (USW) union, members of Congress, and both presidential candidates, Donald Trump and Kamala Harris. Concerns center around potential national security risks, as the deal could impact the supply of steel for critical infrastructure projects.
A CFIUS letter dated August 31st outlined these concerns, citing potential harm to the supply of steel for transportation, infrastructure, construction, and agriculture. In response, Nippon Steel and U.S. Steel executives met with senior U.S. officials on Wednesday to discuss the deal's future.
The outcome of the meeting remains unclear. Additionally, the Japan Business Federation and several U.S. business groups have expressed concerns that political pressure might be influencing the national security review of the deal.
While Japan's Minister of Economy, Trade and Industry declined to comment directly on the deal, he emphasized the importance of continued transactions between Japanese and U.S. companies for the sake of their strong economic relationship.