The U.S. national security panel reviewing Nippon Steel’s $14.9 billion bid for U.S. Steel has allowed the companies to refile their application, postponing a decision on the politically sensitive merger until after the November 5 presidential election. This decision comes after the Committee on Foreign Investment in the United States (CFIUS) raised concerns about potential risks to national security and the steel supply chain for critical U.S. industries.
By allowing the refiling, CFIUS has reset the review process with a new 90-day timeline, which is expected to take nearly the full duration. This extension alleviates immediate pressure on both companies and strategically pushes the decision past the election, during which Vice President Kamala Harris has publicly expressed a desire for U.S. Steel to remain “American owned and operated.”
Harris’s Republican opponent, Donald Trump, has vowed to block the acquisition if elected, adding to the political stakes surrounding the deal. The United Steelworkers Union has been vocal in opposing the merger, citing national security and supply chain concerns.
While the postponement may reduce political tensions, analysts caution that it does not guarantee approval. Nippon Steel must still negotiate an agreement with the United Steelworkers, which remains a significant hurdle.
The situation is being closely monitored in Japan, where officials emphasize the importance of strong economic ties with the U.S.