Photo credit: www.investing.com

Nippon Steel Seeks U.S. Approval for Acquisition of U.S. Steel with Production Commitments

Japan’s Nippon Steel has put forth a proposal aimed at securing the approval of the U.S. government for its acquisition of U.S. Steel. A source familiar with the negotiations revealed that the proposal includes granting the U.S. government veto power over any future reductions in U.S. Steel’s production capacity.

The acquisition process has reached a critical juncture, as the Committee on Foreign Investment in the United States (CFIUS) has referred the matter to President Joe Biden for a conclusive decision. The President, whose term concludes on January 20, must finalize his decision by January 7. Should he choose to remain silent on the issue, the merger would automatically receive approval.

A spokesperson for the White House confirmed on Tuesday that they have received the evaluation from CFIUS and that President Biden will be reviewing the findings.

According to a report from The Washington Post, Nippon Steel has committed to maintaining production levels at U.S. Steel’s domestic facilities for ten years, barring any reductions that would not receive approval from a panel led by the Treasury Department.

As of now, neither U.S. Steel nor Nippon Steel has issued any statements in response to inquiries from Reuters regarding the ongoing discussions.

Source
www.investing.com