Biden's Crucial Decision: Nippon Steel's $15B Bid for U.S. Steel

Nippon Steel's $15 billion bid for U.S. Steel has been referred to President Joe Biden for approval amid national security concerns. The Committee on Foreign Investment in the United States highlighted potential risks, and Biden has 15 days to decide. The deal could significantly impact U.S. domestic steel production and labor markets.

Nippon Steel's ambitious $15 billion bid for U.S. Steel has reached President Joe Biden's desk, with the president having 15 days to make a decision on the matter. The bid, which has drawn scrutiny, was reviewed by the Committee on Foreign Investment in the United States (CFIUS) due to potential national security risks.

Despite Nippon Steel's assurances to address security concerns by involving U.S. citizens in key roles, as first reported by The Washington Post, the committee remained divided. CFIUS noted that the takeover could lead to reduced domestic steel production, presenting a strategic risk.

Beyond security issues, the bid also faces opposition from the United Steelworkers union over fears of outsourcing. Nippon Steel, nonetheless, sees the acquisition as essential for growth, though legal challenges might arise if the acquisition fails.

(With inputs from agencies.)