The U.S. Treasury has informed Japan’s Nippon Steel that the Committee on Foreign Investment in the U.S. (CFIUS) has yet to reach an agreement on how to address security concerns regarding its proposed $14.9 billion purchase of U.S. Steel.
According to the Financial Times, the nine agencies on the panel are struggling to reach a consensus ahead of the December 22 deadline to submit a recommendation to President Joe Biden. The deal is under scrutiny due to concerns that it could harm the supply of steel needed for critical transportation, construction, and agriculture projects, as stated in a letter seen by Reuters.
The acquisition has faced opposition since its announcement last year, with both President Biden and his predecessor Donald Trump indicating their intentions to block the purchase.
Neither U.S. Steel, CFIUS, nor the U.S. Treasury commented on the matter, while Nippon Steel declined to comment. The outcome of the review remains uncertain, but the deal’s fate is likely to be decided by the end of the year.
