High-Stakes Negotiations: Nippon Steel's Bid for U.S. Steel Faces Political and National Security Challenges

Top executives from Nippon Steel and U.S. Steel are meeting with senior U.S. officials to salvage Nippon's $14.9 billion bid for U.S. Steel. The deal faces opposition from major political figures and a national security review by CFIUS. Business groups express concern over political influence on the review process.

Top executives from Nippon Steel and U.S. Steel are meeting with key U.S. officials to salvage Nippon's $14.9 billion bid for U.S. Steel, sources close to the matter revealed. The meeting includes senior negotiators from both sides, as well as Treasury Deputy Secretary Wally Adeyemo and Commerce Deputy Secretary Don Graves.

Both companies and the Treasury and Commerce Departments have declined to comment, while the White House has yet to respond. The meeting takes place amidst opposition from political heavyweights including Donald Trump and Kamala Harris, who are focused on winning pivotal votes in Pennsylvania, the headquarters of U.S. Steel.

Concerns have been raised by groups like the Japan Business Federation and U.S. business chambers over political pressure influencing the CFIUS review. CFIUS warned that the deal could jeopardize U.S. national security. However, Nippon and U.S. Steel argue that the merger would bolster U.S. steel production through significant investment from an allied nation.

(With inputs from agencies.)