Japan’s Nippon Steel Proposes Veto Power for US Government in U.S. Steel Acquisition
Japan’s Nippon Steel has proposed giving the U.S. government veto power over any potential cuts to U.S. Steel’s production capacity as part of its efforts to secure President Joe Biden’s approval for acquiring the American steelmaker. The proposal was made in response to the Committee on Foreign Investment in the United States (CFIUS) referring the decision to approve or block the deal to Biden.
According to a source familiar with the matter, Nippon Steel has pledged a 10-year commitment not to cut production capacity at U.S. Steel’s domestic mills, unless approved by a Treasury-led review panel. The proposal is an attempt to address concerns over job losses and national security implications.
The deal is currently under review by the White House, with Biden having until January 7 to make a decision. If he takes no action, the merger will be automatically approved.
Nippon Steel and U.S. Steel did not immediately respond to requests for comment. The White House spokesperson confirmed that the President will review the CFIUS evaluation, but did not provide further details.