U.S. Steel Acquisition by Nippon Steel Faces National Security Hurdles

The Biden administration has expressed concerns over Nippon Steel's $14.9 billion bid to acquire U.S. Steel, citing national security risks. Both Democratic and Republican leaders oppose the deal, which could harm American steel production and jobs. Nippon Steel and U.S. Steel argue the deal would benefit the industry.

The Biden administration has flagged Nippon Steel's $14.9 billion acquisition of U.S. Steel as a national security risk, according to sources. This scrutiny adds to the growing sentiment that the U.S. government may block the deal.

Opposition to the acquisition spans both major political parties. Vice President Kamala Harris and former President Donald Trump have both voiced strong objections. The Committee on Foreign Investment in the United States (CFIUS) articulated its concerns in a letter, stating the deal could undermine U.S. steel production and trade protections.

Nippon Steel and U.S. Steel counter that blocking the deal would harm the American steel industry, potentially leading to job losses and weakened steel supply. Both companies are determined to navigate legal avenues to finalize the acquisition, which they insist will benefit Pennsylvania and American steelmaking.

(With inputs from agencies.)