On the 24th, Kyodo News reported that Nippon Steel has reapplied to U.S. authorities for the review of its acquisition of US Steel, which is considered a symbol of American industrialization.
According to the report, the U.S. Committee on Foreign Investment in the United States (CFIUS) initially set the review deadline for the 23rd and planned to submit a recommendation to President Joe Biden, but with this reapplication, the review period has been extended by 90 days.
Accordingly, CFIUS's decision on Nippon Steel's acquisition of US Steel will be postponed until after the U.S. presidential election in November. It appears that the U.S. government is reluctant to make a decision on the sale of a symbolic domestic company to a foreign entity before the election.
Republican presidential candidate former President Donald Trump, as well as Democratic vice presidential candidate Kamala Harris, have expressed opposition to Nippon Steel's acquisition of US Steel. President Biden has also stated that he will not allow Nippon Steel's acquisition of US Steel. The bipartisan opposition to Nippon Steel's acquisition of US Steel is analyzed to be due to consideration of the voting sentiment of Pennsylvania voters, a key battleground state.
Earlier, in December last year, Nippon Steel agreed to purchase US Steel for $14.1 billion (approximately 18.3 trillion won) and applied to CFIUS for review. CFIUS, overseen by Treasury Secretary Janet Yellen, examines the impact of foreign investment in the U.S. on national security and can require corrective measures or recommend the president block the transaction if security concerns are found.
With the U.S. government extending the review period, Nippon Steel has, for now, gained more time to complete the acquisition of US Steel.
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