Nippon Steel’s $14B US Steel Takeover Faces Divided Security Panel, But Path to Approval Emerges
The fate of Nippon Steel’s $14.9 billion takeover of U.S. Steel hangs in the balance after a divided U.S. national security panel submitted its recommendation to President Donald Trump—with a majority suggesting security risks can be resolved, according to a White House official. The move sets up a high-stakes 15-day decision period for Trump, who must weigh economic benefits against national security concerns after Biden blocked the deal in January.
Key Developments
🔹 CFIUS Split: The Committee on Foreign Investment in the U.S. (CFIUS) was not unanimous but concluded risks are “likely addressable” with safeguards.
🔹 Trump’s Call: The president now has 15 days (though delays are possible) to approve, reject, or demand new terms for the merger.
🔹 Nippon’s Sweetener: The Japanese firm recently upped its U.S. investment pledge to 14B∗∗,includinga∗∗14B∗∗,includinga∗∗4B new steel mill, to sway critics.
Why It’s Contentious
🇺🇸 National Security: Biden previously blocked the deal, citing supply chain risks for defense and infrastructure.
⚖️ Legal Battle: U.S. Steel and Nippon sued, claiming the prior review was unfair—a charge the Biden administration denied.
🏭 Economic Case: Nippon vows to preserve jobs, boost capacity, and outcompete China—key themes for Trump’s base.
What’s Next?
- Mitigation Measures: CFIUS may propose firewalls on sensitive operations or U.S. oversight of technology sharing.
- Political Calculus: Trump must balance protectionist rhetoric with alliance ties to Japan and industrial growth.
- Market Impact: Approval could lift U.S. Steel shares (up 3% this week); rejection may trigger Nippon’s $565M breakup fee.
Stakeholder Reactions
🏛️ White House: “The President will review all agency positions” (anonymous official).
🗳️ Unions & Lawmakers: Split between job guarantees and “Keep US Steel American” demands.
📈 Investors: Await clarity on whether $14B in pledged investments survives scrutiny.