Nippon Steel and U.S. Steel Push Forward Amid $15 Billion Merger Controversy

Nippon Steel and U.S. Steel have addressed President Joe Biden regarding their proposed $15 billion merger, facing resistance from many parties including Biden and Congress. Concerns revolve around national security risks and supply chain impacts. Discussions continue as stakeholders aim to salvage the deal amidst political pressure.

Nippon Steel and U.S. Steel sent a letter on Sunday to U.S. President Joe Biden addressing concerns about their planned $15 billion merger. Media reports suggest Biden is preparing to block the deal, although specifics of the letter's content remain undisclosed. It was signed by executives including Nippon Steel's Chief Executive Eiji Hashimoto and U.S. Steel's CEO David Burritt.

U.S. Steel has yet to respond to requests for comment, and the U.S. embassy in Japan also remains silent. Despite objections from Biden, the United Steel Workers (USW) union, and Congress, Nippon Steel aims to buy the historic 123-year-old U.S. Steel. This comes as a U.S. national security review is underway.

Political figures including Donald Trump and Kamala Harris have opposed the deal, citing concerns posed by the Committee on Foreign Investment in the United States (CFIUS). According to an Aug. 31 letter, the merger could jeopardize steel supplies crucial for transportation, infrastructure, and agriculture projects.

Senior executives from both companies met with U.S. officials on Wednesday to salvage the agreement, but the meeting's results are not yet clear. On Wednesday, U.S. business groups and the Japan Business Federation voiced worries that political influence may be affecting the Biden administration's review of the deal in a letter to Treasury Secretary Janet Yellen.

Japan's Minister of Economy, Trade and Industry, Ken Saito, abstained from commenting on the merger to avoid interfering in U.S. domestic matters but underscored the importance of ongoing transactions between Japanese and U.S. companies for economic growth.

(With inputs from agencies.)