Nippon Steel's $14.9 Billion Bid for U.S. Steel Faces Political Hurdles

A top executive from Nippon Steel is set to meet U.S. officials to salvage the firm's $14.9 billion bid for U.S. Steel. The bid faces scrutiny from the Committee on Foreign Investment in the U.S. (CFIUS), which has cited national security risks. The deal has also drawn opposition from political figures amid electoral pressures.

Takahiro Mori, a top Nippon Steel executive, will meet with senior U.S. officials on Wednesday to attempt to salvage the firm's $14.9 billion bid for U.S. Steel, according to informed sources. The meeting, expected to include Treasury Deputy Secretary Wally Adeyemo and Commerce Deputy Secretary Don Graves, comes amid intense scrutiny of the proposed acquisition.

The Treasury Department and Nippon Steel have declined to comment on the matter, while the Commerce Department, the White House, and U.S. Steel did not immediately respond to requests for comment. U.S. business groups have raised concerns, alleging undue political influence on the national security review of the deal by the Biden administration.

The Committee on Foreign Investment in the U.S. (CFIUS) had issued a letter in August warning that the merger could jeopardize U.S. national security by weakening the steel supply chain. Nippon Steel has countered with a detailed letter arguing that the acquisition would bolster U.S. steel production through necessary financial investment. The meeting also coincides with bipartisan opposition from presidential candidates Donald Trump and Kamala Harris, who are targeting Pennsylvania voters.

(With inputs from agencies.)