A key U.S. government panel has reached an impasse over Nippon Steel‘s NPSCY $14.9 billion bid for United States Steel Corporation X, shifting the final decision to President Joe Biden amid mounting national security concerns.
The Committee on Foreign Investment in the United States delivered its split decision on Monday, citing potential risks to domestic steel production, The Washington Post reported, citing sources.
A White House spokesperson, as cited in the report, confirmed the referral and stated, "The President will review the evaluation."
While Nippon Steel offered to appoint U.S. citizens to top management positions as a remedy, the panel remained divided on the effectiveness of these measures.
The development adds complexity to a deal that has faced opposition from Biden since March. The President, who must decide within 15 days, has previously emphasized the importance of keeping U.S. Steel under American ownership.
The United Steelworkers union, led by President David McCall, has strongly opposed the acquisition. Meanwhile, Nippon Steel and U.S. Steel have warned of immediate legal challenges if the deal is blocked, claiming in a Dec. 17 letter that the review process has been influenced by political considerations.
Cleveland-Cliffs Inc. CLF, which lost the bidding war for U.S. Steel, has also emerged as a key opponent of the Japanese acquisition.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
