Nippon Steel and U.S. Steel sent a letter to President Joe Biden regarding their proposed $15 billion merger, amid reports that the Biden administration is preparing to block the deal. The letter, signed by executives including Nippon Steel’s CEO Eiji Hashimoto and U.S. Steel’s CEO David Burritt, did not disclose specific details of its contents.
The merger faces significant opposition from various parties, including the United Steel Workers (USW) union, members of Congress, and political figures such as Donald Trump and Kamala Harris, particularly due to concerns over national security. The Committee on Foreign Investment in the United States (CFIUS) has indicated that the merger could pose risks to the supply of steel essential for critical infrastructure projects.
Despite the challenges, Nippon Steel and U.S. Steel executives recently met with senior U.S. officials to discuss the deal’s future. The outcome of that meeting remains uncertain.
Japan’s Minister of Economy, Trade and Industry, Ken Saito, emphasized the importance of ongoing transactions between Japanese and U.S. companies, although he refrained from commenting directly on the merger due to its implications for U.S. domestic affairs.