Nippon Steel Proposes National Security Agreement for U.S. Steel Acquisition

Nippon Steel has proposed a binding national security agreement to address concerns over its $14.9 billion acquisition of U.S. Steel. The proposal ensures that U.S. Steel’s production will be maintained and overseen by an internal 'trade committee' of U.S. citizens. Former U.S. House leader Dick Gephardt is aiding the negotiations.

Nippon Steel has proposed a binding national security agreement to assuage the Biden administration's concerns regarding its $14.9 billion acquisition of U.S. Steel, according to documents reviewed by Reuters.

In a joint letter to the Committee on Foreign Investment in the United States, Nippon Steel and U.S. Steel committed to maintaining current production levels, pledging that any reduction in capacity would require approval from a majority of independent U.S. directors. Additionally, the proposal includes the formation of an officer-level 'trade committee' made up of U.S. citizens to oversee operations.

To bolster its case, Nippon Steel has enlisted former U.S. House majority leader Dick Gephardt to help with negotiations involving the United Steelworkers union.

(With inputs from agencies.)