CFIUS Decision on Nippon Steel's Takeover Bid for U.S. Steel is Imminent

A powerful U.S. security committee faces a pivotal decision. The Committee on Foreign Investment in the United States (CFIUS) has until September 23 to make a recommendation on whether the U.S. government should block the $14.9 billion acquisition of U.S. Steel by Japan's Nippon Steel. This deadline marks the end of the second 90-day review period. If no decision is reached by this date, the review could be extended by another 90 days. Such an extension would push the politically sensitive decision past the election day on November 5. Alternatively, the committee could approve the deal—possibly with conditions to ensure national security—or advise President Joe Biden to prevent the acquisition. This acquisition has become a political flashpoint. Notable opponents, including President Joe Biden, Vice President Kamala Harris, and former President Donald Trump, oppose the takeover and emphasize the importance of domestic ownership of strategically important resources like steel. "It is essential that U.S. Steel remains an American company operated nationally," emphasized Saloni Sharma, a White House advisor. U.S. Steel is headquartered in Pennsylvania, a crucial swing state in the upcoming presidential elections. The United Steelworkers union, which has backed Harris, is also critical of the acquisition. As the deadline approaches, political pressure and uncertainty about the deal's outcome are mounting. On August 31, the committee hinted that the acquisition could jeopardize the security of the American steel supply. In response, the involved companies submitted a 100-page statement highlighting the positive impacts of the acquisition on U.S. steel production and requested an extension of the review period. While CFIUS and Nippon Steel declined to comment and U.S. Steel did not respond to inquiries, a decision in the coming days seems unlikely. A senior government official confirmed that a decision might be postponed until after election day. The companies are pinning their hopes on recent endorsements, including a letter from various business groups such as the Chamber of Commerce, criticizing political interference in the transaction. Thorough reviews by CFIUS typically last 90 days, but it is common for companies to withdraw and refile their applications to gain more time to address concerns. In March, Nippon Steel and U.S. Steel submitted their application, leading to a refile in June and a second 90-day review period now ending on September 23.