Decision on US Steel takeover by Nippon postponed after elections

President Joe Biden's administration has extended its review of Nippon Steel's planned takeover of US Steel, officials said on Tuesday (September 17), effectively postponing the politically sensitive decision beyond the November elections.

Biden and Democratic presidential candidate Kamala Harris have both said they oppose the $14.9 billion deal, and reports earlier this month said the president intended to block the deal.

However, US Steel warned that blocking the sale could lead to the closure of factories in Pennsylvania – potentially the most important swing state in the election campaign in which Harris is running against Republican Donald Trump.

Biden had been waiting for the final decision of the Committee on Foreign Investment in the United States (CFIUS), a national security panel chaired by Treasury Secretary Janet Yellen that reviews foreign takeovers of American companies.

Nippon Steel has now asked to be allowed to resubmit its application, a person familiar with the situation told AFP.

“To our knowledge, CFIUS has granted this request,” the person said on condition of anonymity.

The review panel “needs more time to understand the full national security implications of the transaction, including the resilience of critical supply chains, and to engage with the parties.”

According to US media, Nippon Steel now has another three months to present its arguments, meaning a possible decision would only be possible after election day on November 5.

The White House stressed that there was “no so-called delay” because the agency never said when it would present its findings.

“The President and Vice President believe it is critical for U.S. Steel to remain a domestically owned and operated American steel company,” said White House spokeswoman Saloni Sharma.

Trump has also announced that he will block the agreement.

Pennsylvania is one of the seven swing states that will decide the US election and possibly the state on which the entire outcome will depend.

Last week, major Japanese and American business associations urged Yellen not to give in to political pressure in reviewing the agreement.

US Steel shares fell earlier this month when it was announced that Biden wanted to block the company.