Executive from Nippon Steel to Visit Washington Next Week, Pursuing US Steel Agreement, Sources Confirm
Nippon Steel's Bid for U.S. Steel: A Tumultuous Journey
Vice Chairman Takahiro Mori of Nippon Steel is scheduled to jet off to Washington next week, aiming to secure approval for the company's $15 billion purchase of U.S. Steel. According to an inside source, Mori will meet with Trump administration officials during his trip, as reported by Semaphor.
Despite the upcoming talks, both U.S. Steel and Nippon Steel have yet to respond to media inquiries regarding the visit.
Back in January, President Biden blocked the proposed merger, citing vague national security concerns in connection with a national security review directed by the Committee on Foreign Investment in the US (CFIUS). Many believed that the rejection of the deal signaled a serious concern over potential risks to American security, infrastructure, and supply chains.
After the denial, the two companies took legal action against CFIUS, claiming that Biden had biased the committee's decision and deprived them of a fair review. They argued that Biden's position against the deal in 2024, during his campaign for re-election, was intended to win support from labor unions in the swing state of Pennsylvania, where U.S. Steel is headquartered.
Although the Biden administration defended its review as necessary for maintaining security, infrastructure, and supply chains, the situation took a turn in April when President Trump ordered CFIUS to reevaluate the merger. This review raised hopes that the deal might secure the long-awaited green light.
However, Trump later reaffirmed his opposition to the merger, stating that a foreign company should not control U.S. Steel, dashing any hopes for approval.
It's important to note that the Biden administration has remained consistently opposed to the Nippon Steel acquisition of U.S. Steel since April 2022, maintaining this stance through early 2025. Despite any shifts in the review under the Trump administration, there's currently no evidence to suggest a change in the overall stance of the Biden administration. (Sources: 1, 2, 3, 5)
- The steelworkers at U.S. Steel may be concerned about the potential risks associated with the blocked merger between their company and Nippon Steel, a concern that has persisted since April 2022, as the Biden administration remains consistently opposed to the acquisition.
- Further complicating matters is the ongoing legal dispute between U.S. Steel and Nippon Steel, who claim that the Biden administration biased the Committee on Foreign Investment in the US (CFIUS) decision against their merger in 2024, presumably to win support from labor unions in Pennsylvania.
- Vice Chairman Takahiro Mori's trip to Washington next week to secure approval for Nippon Steel's $15 billion purchase of U.S. Steel comes amidst these contentious industry, finance, and business issues surrounding the potential merger.
- Any potential approvals for the merger, whether during the Trump or Biden administrations, will have significant implications for the steel industry, potential foreign investment in U.S. businesses, and the overall future of international trade relations.
