Steel Showdown: US Rejects Nippon's Bid Amid Security Concerns

Nippon Steel's $15 billion bid for U.S. Steel faces opposition from President Biden, who awaits the outcome of a security review by CFIUS before deciding on the deal. Concerns around national security and job transfers are central to the ongoing review, with stakeholders like USW voicing firm opposition.

Nippon Steel's ambitious $15 billion acquisition of U.S. Steel is mired in uncertainty as President Joe Biden awaits the conclusion of a national security review. The Committee on Foreign Investment in the United States (CFIUS) has until December 22 to decide the fate of the deal, which faces mounting opposition.

While CFIUS reviews whether foreign investment in U.S. Steel poses security threats, Biden's stance remains firm: U.S. Steel must stay domestically owned. Nippon Steel has expressed confidence in U.S. legal fairness, but concerns persist over potential risks to critical infrastructure sectors like transportation and construction.

Despite resistance from the United Steelworkers union and political figures, Nippon Steel is pressing forward by offering financial incentives to U.S. Steel employees, reiterating its commitment not to transfer jobs abroad. The coming weeks will be crucial in deciding whether the merger will proceed or face a legal showdown.

(With inputs from agencies.)