Nippon Steel’s $15 Billion Acquisition of US Steel Might Fall Through

The $15 billion bid for US Steel by Japan’s Nippon Steel may be on life support. 

The Committee on Foreign Investment (CFIUS) is divided on whether the deal presents a security risk. With a December 23 deadline to advise President Joe Biden, the split gives him more grounds to block the acquisition, announced a year ago.

Union Man, Now, All The Way

While the Treasury, Pentagon, and State Department say the deal poses no security risk, US Trade Representative Katherine Tai, a member of CFIUS, disagrees, citing potential supply chain and intellectual property issues. Even if Nippon Steel accepts a mitigation agreement, USTR may remain opposed, according to the Financial Times:

• US Steel, founded over 120 years ago, has a significant legacy, having supplied steel during WWII and contributed to iconic structures like the Superdome and the UN building. Today, it employs about 22,000 people, but its workforce has halved since 2011, and its share price has fallen more than 15% in the past year. 
• The company warned that blocking the acquisition could lead to job cuts and mill closures. Union leadership may oppose the deal, but many workers support it, with hundreds of union members rallying at a mill in Clairton, Pennsylvania, over the weekend. 

Same Page for Once: In a Truth Social post earlier this month, President-elect Donald Trump said he was “totally against the once great and powerful US Steel being bought by a foreign company.” Trump said he would make US Steel “Strong and Great Again,” through a series of tax incentives and tariffs. Hey, looks like there is some common ground between ol’ Joe and Don after all.