National Security Concerns Loom Over Nippon Steel's $14.9 Billion U.S. Steel Takeover

Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel is under scrutiny due to potential national security risks. The Committee on Foreign Investment in the U.S. (CFIUS) highlighted concerns around reducing domestic steel production capacity, which could impact sectors vital for national security like transportation, infrastructure, and agriculture.

Nippon Steel's proposed $14.9 billion takeover of U.S. Steel is raising national security concerns, as revealed in a letter by the Committee on Foreign Investment in the U.S. (CFIUS). The acquisition could impact the supply of steel essential for critical sectors such as transportation, infrastructure, and agriculture, the committee stated.

CFIUS warned that decisions by Nippon could lead to a reduction in domestic steel production capacity, posing risks to national security. Nippon Steel countered, pledging billions to sustain and enhance U.S. Steel facilities. However, the committee argued that any reduction in production capabilities could undermine national security.

Additional concerns were raised about Nippon's growing operations in India and their potential influence on U.S. trade policies. Nippon assured that it wouldn't transfer any production capacity or jobs outside the U.S. nor interfere in U.S. Steel's trade decisions. Both companies and relevant governmental bodies did not immediately respond to requests for comment.

(With inputs from agencies.)