US panel struggles to reach consensus on Nippon-US Steel acquisition

The US Treasury has notified Japan’s Nippon Steel that the panel assessing its $14.9 billion acquisition of US Steel has not reached a consensus on addressing security concerns, as reported by the Financial Times on Sunday.

The Treasury, which heads the Committee on Foreign Investment in the US (CFIUS), informed both companies on Saturday that the nine agencies on the panel were having difficulty reaching a consensus before the deadline to advise President Joe Biden. Sources familiar with the discussions reported this.

CFIUS, a committee that reviews foreign investments in US firms for national security risks, has until Dec. 22 to decide on approving, blocking, or extending the review timeline for the deal.

US Steel and CFIUS did not respond to Reuters’ requests for comments, and Nippon Steel declined to comment.

The committee has expressed concerns about the potential impact on the supply of steel critical for various sectors, including transportation, construction, and agriculture.

The acquisition has faced significant opposition from both the Biden and Trump administrations, raising concerns about the potential implications for US national security.

Attribution: Reuters

Subediting: M. S. Salama