USS confirms split CFIUS decision on Nippon deal; it's now up to Biden

The national security concern identified by CFIUS is that Nippon’s acquisition of U.S. Steel could lead to lower domestic steel production, the Washington Post reported.

U.S. Steel confirmed receipt of the CFIUS decision late Monday.

“It is our hope that President Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security,” the Pittsburgh-based steelmaker said in a statement to SMU.

“Nippon Steel has made extraordinary commitments, including over $2.7 billion of investments in our USW facilities, that will be a binding legal agreement enforceable by the U.S. government, to ensure these virtues are realized,” USS pointed out.

“This is a transaction that should be approved on its merits, and one that should be a model for “friendshoring” investment,” it added.

While Biden has said U.S. Steel should remain an American company, it’s been reported that he will nix the deal. Trump has stated the same.

Attorneys for Nippon and U.S. Steel told CFIUS they would “immediately” challenge a Biden ruling to block the deal and to expect civil lawsuits against the administration, according to the Washington Post report.

Nippon Steel did not respond to an SMU request for comment.

USW unmoved

The United Steelworkers (USW) union, critical of the deal since it was first announced, remains unmoved in its opposition to Nippon’s takeover of the US steelmaker.

In a Christmas Eve statement, union leadership reminded members that Nippon initially was only interested in purchasing U.S. Steel’s Big River Steel assets in Arkansas.

“That continues to be the long-term focus of its acquisition,” USW said. “The result would be the gradual starving of capital to other operations around the country, the likely loss of our jobs, and the negative impact on our country’s economic and national security.

“It is solely the president’s responsibility to review CFIUS’s report and make the determination,” it continued. “Now it’s up to President Biden to determine the best path forward.”