Nippon Steel awaits Joe Biden’s approval for US Steel acquisition

Nippon Steel Corporation has said its proposed acquisition of US steel is awaiting President Joe Biden’s approval. The Japanese steel maker has also left a decision on US Steel’s post-acquisition production capacity to the President, according to reports.

Nippon Steel has already pledged not to cut steel production at US Steel for the next 10 years, unless authorised by the US government.

Nippon Steel had, in a release dated 18 December, said the recommendations of the Committee on Foreign Investment in the United States (CFIUS) are already with the President’s office and he is expected to make a decision latest by 7 January.

In case the President fails to decide on the matter within the 15-day period, the acquisition will get automatic approval.

If the President wants to block the deal referred to him, he will have to make a decision by then. In any case, Biden will be leaving office on 20 January. 

Nippon Steel said it expected the President will conduct a fair and fact-based evaluation of the acquisition, which, it said, will help revive the fortunes of US Steel while also benefiting the US economy.

Nippon Steel also deferred the deadline for conclusion of the transaction as the review process by the Justice Department is also pending

Nippon Steel and trading house Sojitz, meanwhile, agreed to acquire a 49 per cent stake in the Canadian iron ore project of Australian steelmaker Champion Iron for $152 million, to shore up raw materials for its steel production. 

Read also: President Joe Biden blocks Nippon Steel’s acquisition of US Steel