Biden will decide on US Steel acquisition after influential panel fails to reach consensus

[BumRushDaShow]

Source: AP

Updated 12:24 AM EST, December 24, 2024


WASHINGTON (AP) — A powerful government panel on Monday failed to reach consensus on the possible national security risks of a nearly $15 billion proposed deal for Nippon Steel of Japan to purchase U.S. Steel, leaving the decision to President Joe Biden, who opposes the deal.

The Committee on Foreign Investment in the United States, known as CFIUS, sent its long-awaited report on the merger to Biden, who formally came out against the deal in March. He has 15 days to reach a final decision, the White House said. A U.S. official familiar with the matter, speaking on condition of anonymity to discuss the private report, said some federal agencies represented on the panel were skeptical that allowing a Japanese company to buy an American-owned steelmaker would create national security risks.

Monday was the deadline to approve the deal, recommend that Biden block it or extend the review process.

Both Biden and President-elect Donald Trump have courted unionized workers at U.S. Steel and vowed to block the acquisition amid concerns about foreign ownership of a flagship American company. The economic risk, however, is giving up Nippon Steel’s potential investments in the mills and upgrades that might help preserve steel production within the United States.

Read more: https://apnews.com/article/us-steel-japan-nippon-cfius-national-security-2b155b68713ce83e1cc789ec8aaf3ca7

[ancianita]

1. Joe Biden knows the security risks of this deal more than the panel. He knows best what's the right thing to do.

[FredGarvin]

2. I wonder why there are no US based corporations interested?

If the corpse of the former American giant has value, why are there no takers?

[BumRushDaShow]

3. Per the article, there is one

A growing number of conservatives have publicly backed the deal, as Nippon Steel began to win over some steelworkers union members and officials in areas near its blast furnaces in Pennsylvania and Indiana. Many backers said Nippon Steel has a stronger financial balance sheet than rival Cleveland-Cliffs to invest the necessary cash to upgrade aging U.S. Steel blast furnaces.

That company made an offer over a year ago to USS that was rejected -

US Steel rejects a $7.3 billion offer from rival Cleveland-Cliffs; considers alternatives (August 13, 2023)

They are still wanting to buy it -

Threatened by foreign investment, Cleveland-Cliffs teamed up with its union to unravel U.S. Steel deal (Dec 22, 2024)

[Igel]

4. Sounds like Cleveland-Cliffs wants to use the government

to help coerce their acquisition of US Steel, doesn't it?

Big corporations since the '70s have found ways to use government to help themselves. (Of course, they're not the only ones. A lot of donors benefit from supporting those that would support or have supported them.)

[BumRushDaShow]

5. In this case yes

but then the industry here in the U.S. had pretty much ceded itself to Asia. One of the biggest past brouhahas was with "cheap" Korean steel imports... until China outdid them all and even flooded S. Korea with their stuff.