The US government has extended its national security review of Nippon Steel’s proposed $15bn acquisition of US Steel, despite opposition from President Joe Biden and vice-president Kamala Harris. The Committee on Foreign Investment in the US (Cfius) has granted the Japanese group a 90-day extension, delaying a final decision until after the US election on November 5. The deal has become entangled in the White House race, with both Harris and Republican candidate Donald Trump opposing it as they court votes in Pennsylvania, where US Steel is based. Cfius had already completed a review and determined that the deal posed security risks that could not be mitigated. The extension comes just before Biden is set to meet Japan’s Prime Minister Fumio Kishida at a Quad security grouping summit.
Nippon Steel declined to comment on the extension while US Steel did not respond to requests for comment. A spokesperson for the White House reiterated Biden and Harris’ support for keeping US Steel domestically owned and operated. David McCall, president of United Steelworkers Union (USW), stated that there were no changes regarding national security risks or critical supply chain concerns associated with Nippon’s acquisition.
Sources familiar with the situation revealed that Cfius had raised serious national security concerns which prompted both companies to request more time to address those issues. It is common for companies to refile petitions for approval in complex cases like this one, and it is expected that Cfius will take close to the full 90 days to complete its review.
The decision to extend the security review was made due to multiple factors overwhelming the system in the US at this time. Negotiations between Japan and the US regarding export controls for China’s chip industry are ongoing while both countries are also experiencing political seasons with upcoming elections.
despite opposition from President Biden and Vice-President Harris, Nippon Steel’s acquisition of US Steel remains under review by Cfius due to serious national security concerns. The extension means that a final decision will likely be made after November 5th when it will fall into the hands of either President Biden or his successor following next year’s election.
