Nippon Steel Faces Uncertain Fate in U.S. Steel Bid

Nippon Steel's $15 billion bid for U.S. Steel is now under U.S. President Joe Biden's review after the Committee on Foreign Investment in the United States (CFIUS) referred the deal. With high-level opposition, Biden has 15 days to decide on a merger, potentially blocking it or allowing it to proceed.

Nippon Steel's ambitious $15 billion bid for U.S. Steel now awaits a critical decision from President Biden, following a referral by the U.S. Committee on Foreign Investment (CFIUS). The deal faces significant opposition, as both Biden and predecessor Donald Trump have previously voiced concerns.

The merger, touted as crucial for Nippon Steel's global production ambitions, could potentially strengthen U.S. Steel. Opposition highlights a risk to national security, citing concerns over domestic steel production. All eyes are on Biden, whose decision remains unpredictable with only 15 days to respond.

If blocked, Nippon Steel may face a $565 million penalty, potentially sparking legal escalation. Industry analysts suggest the approval hinges on political climate and security assurances, casting the future of this transpacific steel alliance in doubt.

(With inputs from agencies.)