Business Groups Alarmed Over Political Pressure in Nippon Steel's U.S. Steel Acquisition Review

U.S. business groups expressed concerns that the Biden administration's national security review of Nippon Steel's $14.9 billion acquisition of U.S. Steel is being swayed by political pressure. The groups, including the U.S. Chamber of Commerce, fear that political agendas are influencing the review process, posing risks to the U.S. economy and workers.

Several U.S. business groups voiced concerns on Wednesday over the Biden administration's national security review of Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel, alleging undue political influence.

The Committee on Foreign Investment in the United States (CFIUS) notified the companies in an August 31 letter, seen by Reuters, that the deal could harm American steel production. Leading organizations such as the U.S. Chamber of Commerce, Alliance for Automotive Innovation, National Foreign Trade Council, and United States Council for International Business addressed Treasury Secretary Janet Yellen, stating their fears that the CFIUS process is being exploited for political reasons beyond the committee's mandate.

They warn that such political meddling could jeopardize both the U.S. economy and jobs.

(With inputs from agencies.)