Nippon Steel Accuses White House of “Impermissible Undue Influence” Over National Security Review of U.S. Steel Bid
Nippon Steel and U.S. Steel have accused the White House of “impermissible undue influence” over a national security review of their $14.9 billion bid, claiming that President Joe Biden may have personally influenced the review’s outcome to please United Steelworkers (USW) President David McCall, who opposes the deal.
The accusation was made in a December 17 letter to the Committee on Foreign Investment in the United States (CFIUS), seen by Reuters, in which Nippon Steel and U.S. Steel rebutted CFIUS’s national security arguments and alleged that Biden may have weighed in on the deal to please USW and endorsed him for President soon after he announced his opposition to the merger.
The companies claim that Biden’s opposition to the deal is driven by a desire to see U.S. Steel remain American-owned and operated, rather than merged with a foreign company like Nippon Steel. Nippon Steel and U.S. Steel argue that the deal would actually strengthen U.S. Steel’s position and improve its competitiveness in the global market.
The White House has denied the allegations, with a spokesperson stating that the claim of impermissible influence is “not true.” Nippon Steel and U.S. Steel have threatened to file a petition in the U.S. Court of Appeals for the DC Circuit challenging any decision to block the deal, if the White House ultimately decides to block the deal.
The proposed tie-up has faced high-level opposition within the United States since it was announced a year ago, with both Biden and his predecessor, Donald Trump, opposing the deal as they sought to woo union voters in the swing state of Pennsylvania, where U.S. Steel is headquartered. The deal has been the subject of a 90-day review by CFIUS, which has a Monday deadline to approve, extend, or recommend that the deal be blocked. However, a government shutdown could pause the clock, CFIUS lawyers have said.
