Federal decision on Nippon-US Steel takeover to be pushed back

Japan’s largest steel maker, Nippon, is asking to refile its bid to acquire US Steel, a person familiar with the decision told The Hill, a move that will put off a decision on approving the deal until after the president election.

The Committee on Foreign Investment in the United States (CFIUS), in inter-agency group that approves major transactions that could have a negative affect on U.S. security, has reportedly granted the request for Nippon to refile its bid.

“CFIUS needs more time to understand the full national security impact of the transaction, including to the resilience of critical supply chains, and engage with the parties,” the person familiar with the decision told The Hill.

Nippon’s proposed purchase of US steel is a controversial issue. Former President Trump has said he would block the deal.

“I will stop Japan from buying United States Steel,” Trump said on Aug. 19 at a campaign event in York County. “They shouldn’t be allowed to buy it.”

Both President Biden and Vice President Harris, the Democratic nominee for president, say they want US Steel to remain American-owned.

“US Steel is a historic American company, and it is vital for our nation to maintain strong American steel companies,” Harris said at the Labor Day event earlier this month. “And I couldn’t agree more with President Biden, US Steel should remain American owned and American operated.”

The United Steelworkers Union also opposes the deal.

“Our concerns are rooted in a wealth of evidence. Nippon Steel has a long history of strategically importing both substrate and finished products into the United States and countries as it offloads its 16 million tons of over-capacity in Japan and China, all to the detriment of American steelmaking and American steelworkers,” David McCall, international president for US Steelworkers wrote earlier this year.

Nippon declined to comment.

Alex Gangitano contributed to this story.