A Committee of top government agency officials has informed President Joe Biden that it has not reached a consensus on whether the sale of US Steel to a Japanese rival, Nippon Steel, poses a national security risk. The fate of the deal is now in Biden’s hands, as he has been arguing for months that the company should remain American-owned to protect domestic steel jobs.
The Committee for Foreign Investment in the United States (CFIUS), which is responsible for reviewing potential national security risks, was deadlocked on the issue. This is unusual, as a final report from the committee typically informs a president’s view on the potential risks a deal poses.
US Steel and Nippon have maintained that the deal does not pose a national security threat, and have expressed hope that Biden will approve the transaction, which they say will enhance US national and economic security. The transaction has been a lightning rod for controversy, with politicians on both sides of the aisle vowing to protect American manufacturing.
The deal has been under review for several months, and the US Justice Department is also conducting an antitrust review of the potential merger. If Biden does not approve the deal, the US Steelworkers union and Nippon may need to negotiate a new deal that is acceptable to all sides. The deal can also be blocked by President-elect Donald Trump, who has vowed to block the transaction.