Nippon Steel Corp., Japan's largest steelmaker, is asking for its takeover bid for U.S. Steel to be resubmitted, a person familiar with the matter told The Hill, which would delay a decision on approving the deal until after the presidential election.
The Committee on Foreign Investment in the United States (CFIUS), an interagency group that approves large transactions that could have adverse effects on U.S. national security, has reportedly approved the Japanese company's request for a rebid.
“CFIUS needs additional time to understand and consult with the parties about the full national security impacts of this transaction, including the resiliency of critical supply chains,” a person familiar with the decision told The Hill.
Japan's proposed purchase of U.S. steel has been controversial, with former President Trump threatening to block the deal.
“I will stop Japan from buying U.S. Steel,” President Trump said at a campaign event in York County on August 19. “Japan should not be allowed to buy U.S. Steel.”
Both President Biden and Vice President Harris, the Democratic presidential nominee, have said they want U.S. Steel to remain American-owned.
“U.S. Steel is a historic American company, and it's critical for our country to maintain a strong American steel company,” Harris said at a Labor Day event earlier this month, “and I completely agree with President Biden that U.S. Steel should remain American-owned and American-operated.”
The United Steelworkers union also opposes the deal.
“Our concerns are based on abundant evidence: Nippon Steel has a long history of strategically importing both base materials and finished products to the United States and other countries as it disposes of 16 million tons of excess capacity in Japan and China, all to the detriment of American steelmaking and American steelworkers,” said David McCall, international president of the United Steelworkers union. Written Earlier this year.
The Japanese side declined to comment.
Alex Gangitano contributed to this story.
