Nippon Steel gains 90 days for US Steel acquisition review

Nippon Steel is set to re-file its application for a national security review regarding its $15 billion acquisition bid for US Steel, following a 90-day extension granted by American regulators. This extension comes amid significant political opposition, particularly in an election year, with notable figures such as President Joe Biden and both major party presidential nominees expressing their disapproval of the deal. The Committee on Foreign Investment in the United States (CFIUS) has been reviewing the acquisition for several months, focusing on national security concerns. The political landscape surrounding the acquisition has intensified, with multiple Rust Belt Democrats, including Senators Sherrod Brown and John Fetterman, opposing the takeover. The United Steelworkers union, which has endorsed Vice President Kamala Harris, has also been a vocal opponent. This opposition raises questions about the future of the deal, especially as US Steel has indicated that it may need to lay off workers and close mills without the support of Nippon Steel. Japanese Prime Minister Fumio Kishida has stated that the legal reviews will ultimately determine the outcome of the acquisition. Meanwhile, business groups have cautioned against politicizing the review process, emphasizing the importance of evaluating national security risks based on their merits. US Steel had previously put itself up for sale in 2023 after receiving a $7 billion unsolicited offer from Cleveland Cliffs, leading to the current $14.9 billion proposal from Nippon Steel. The extension allows for further deliberation, but the deal remains contentious amid ongoing political scrutiny.