Nippon Steel’s $15 billion bid to buy U.S. Steel has been referred to President Joe Biden after a government panel could not decide whether it should go forward.
The Committee on Foreign Investment in the U.S. deadlocked on a decision. The panel has said allowing the Japanese to take over Pittsburgh-based U.S. Steel could result in lower domestic steel production, representing “a national security risk," according to the Washington Post.
Nippon Steel said it has addressed the concerns and made key commitments to grow U.S. Steel and protect American Jobs, the Wall Street Journal reported.
Biden has opposed the takeover and believes U.S. Steel should be owned and operated in the U.S., CNBC reported. President-elect Donald Trump also has rejected its sale to a foreign company, per CNBC.
If Biden takes no action in the next two weeks, the merger would get an unexpected greenlight, CNBC reported.
If the deal collapses, Nippon Steel must pay a $565 million penalty to U.S. Steel and has said it would consider pursuing legal action against the U.S. government, per CNBC.
The transaction comes as domestic steel demand is growing in the U.S. Prices have soared globally as production capacity has fallen short of need.
