Discord arises among committee members regarding the proposal to offload US Steel.
Nippon Steel's proposed takeover of U.S. Steel is causing a stir in the States. According to media reports, the U.S. Treasury Department's committee, which oversees the Committee on Foreign Investment in the United States (CFIUS), hasn't yet agreed on approving this deal. The Financial Times revealed that CFIUS has communicated to both companies that the committee's members are having a tough time reaching a unanimous decision on a recommendation to President Biden before the deadline. Sources familiar with the discussions confirmed this to the newspaper.
By December 22, CFIUS, responsible for assessing foreign investments in American companies for potential security threats, must decide whether to approve, reject, or extend the review period for this $14.9 billion deal. Neither U.S. Steel nor CFIUS have issued a statement in response to the Financial Times report. Nippon Steel chose to stay silent as well.
Ever since the acquisition was announced, it's been greeted with opposition in the United States. Both President Biden and his predecessor, Donald Trump, publicly declared their intention to impede this deal.
The potential approval of Nippon Steel's takeover of U.S. Steel could have significant implications for the U.S. economy. Regardless of CFIUS's decision, the impact on American steelworkers and the steel industry as a whole remains a concern.
