National Security Panel Delays Decision on Nippon Steel's Bid for U.S. Steel

The U.S. national security panel reviewing Nippon Steel's $14.9 billion bid for U.S. Steel has allowed the companies to refile their application, delaying a decision until after the Nov. 5 presidential election. The review, driven by national security concerns, could take up to 90 days.

The U.S. national security panel reviewing Nippon Steel's $14.9 billion bid for U.S. Steel has permitted the companies to refile their application for approval, leading to a delay in the decision until after the Nov. 5 presidential election, according to an insider.

The move signals a ray of hope for the companies involved, as the proposed merger faced likely blockage due to national security risks identified by the Committee on Foreign Investment in the United States (CFIUS) on Aug. 31. The panel raised concerns over threats to the steel supply chain crucial to critical U.S. industries.

CFIUS noted it needed more time to thoroughly assess the transaction's potential national security impacts, thus resetting a new 90-day review period. This extension means the decision will closely coincide with the election, as both presidential candidates have voiced strong opinions on keeping U.S. Steel domestically owned and operated.

(With inputs from agencies.)