U.S. panel allows Nippon Steel to resubmit U.S. Steel buyout review

This photo shows Nippon Steel Corp.'s logo displayed at the company's headquarters in Tokyo, Japan, April 1, 2024. Reuters-Yonhap

SEOUL, September 19 (AJP) - The Committee on Foreign Investment in the United States (CFIUS) has permitted Japan's largest steelmaker Nippon Steel Corp. to withdraw and resubmit its application for review of its proposed $14.1 billion acquisition of United States Steel Corp., Kyodo News reported on Wednesday.

This development suggests that the Biden administration will not be able to block the deal, with a decision likely to come after the November U.S. presidential election. The move gives the companies more time to address national security concerns surrounding the creation of what would become the world's third-largest steel producer by volume.

The deal, announced in December of 2023, has faced opposition from the United Steelworkers union and become a political issue in the upcoming election. Both President Joe Biden and Vice President Kamala Harris have expressed preferences for U.S. Steel to remain under domestic ownership.

Nippon Steel is expected to withdraw its CFIUS filing by next Monday and resubmit a new application. The company declined to comment on the CFIUS procedures.

AJP

U.S. panel allows Nippon Steel to resubmit U.S. Steel buyout review

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