Biden Administration Shows No Urgency to Halt Nippon Steel’s U.S. Steel Takeover

President Joe Biden has expressed strong reservations regarding Nippon Steel’s proposed acquisition of U.S. Steel. However, it seems the federal government is not rushing to take action against the transaction.

Officials from the White House indicated earlier this month that a formal objection from Biden could be forthcoming. Yet, the report from the Committee on Foreign Investment in the United States (CFIUS), which would inform that decision, has not yet reached the White House.

White House press secretary Karine Jean-Pierre addressed the matter in a briefing, stating, “It’s their process — it’s independent. We have to see the recommendation from CFIUS. That’s the process.”

This potential merger weighs heavily on political dynamics in Pennsylvania, a crucial state for both Vice President Kamala Harris and former President Donald Trump as they prepare for the upcoming election in November. U.S. Steel’s corporate headquarters is located in Pittsburgh, making it a significant concern for local jobs and economies.

Political figures like Biden, Harris, and Trump have all voiced their opposition to the merger. Biden has a close relationship with the United Steelworkers union, which represents many workers at U.S. Steel, and they are particularly concerned about the implications for job security should the takeover proceed.

Supporters of the merger argue that without a stronger corporate structure that could be provided by Nippon Steel, U.S. Steel’s older mills may face closure regardless of the acquisition, leading to further job losses.

The Washington Post had initially reported on September 4 that the federal government would likely block the deal. However, they later updated their coverage to state that a decision regarding the merger would be delayed.