Nippon Steel Offers U.S. Veto Power in U.S. Steel Acquisition Bid

Japan's Nippon Steel is aiming to gain U.S. approval for its bid to acquire U.S. Steel by proposing veto power for the U.S. government over production capacity cuts. President Biden must approve the deal by January 7 or it will be automatically permitted.

In a strategic move to secure U.S. approval for its acquisition of U.S. Steel, Japan's Nippon Steel has proposed granting the U.S. government veto power over any reductions in production capacity. This proposal forms a critical part of Nippon Steel's efforts to win over President Joe Biden's backing, a source familiar with the deal disclosed on Tuesday.

The decision now rests with Biden, who must render his verdict by January 7, prior to his departure from office on January 20. Should he refrain from acting, the merger would proceed automatically. "We received the CFIUS evaluation and the President will review it," a White House spokesperson stated.

Previously, The Washington Post highlighted Nippon Steel's commitment to a 10-year guarantee against production cuts at U.S. Steel's domestic facilities, subject to review by a Treasury-led panel. Despite inquiries, representatives from U.S. Steel and Nippon Steel declined to comment.

(With inputs from agencies.)