Nippon Steel's $14.9 Billion Battle Over Undue Influence Allegations

Nippon Steel accuses the White House of undue influence in the national security review of its $14.9 billion bid for U.S. Steel, threatening legal action if blocked. The accusation, made in a letter to CFIUS, is fueled by Biden's opposition, allegedly influenced by union leader David McCall.

Nippon Steel has accused the White House of exerting 'impermissible undue influence' over a national security review of its $14.9 billion bid for U.S. Steel. The claim, detailed in a letter seen by Reuters, threatens legal action if President Joe Biden opts to block the deal.

The allegation is directed at the Committee on Foreign Investment in the United States (CFIUS), which examines foreign acquisitions for potential national security risks. CFIUS has a deadline to approve the bid, but a government shutdown could delay any decisions.

The opposition stems from Biden's belief that U.S. Steel should remain American-owned. Nippon Steel claims Biden's stance may be influenced by United Steelworkers President David McCall, who opposes the merger. Nippon and U.S. Steel faced challenges following an earlier CFIUS letter raising security concerns which they aim to rebut.

(With inputs from agencies.)