The White House confirmed that the Committee on Foreign Investment in the United States (CFIUS) would proceed with its normal review process regarding Japan’s Nippon Steel‘s acquisition of U.S. Steel, despite President Biden‘s opposition to the deal.
Lael Brainard, a White House economic adviser, emphasized the critical role of the steel industry in national and economic security, stating that Biden firmly believes U.S. Steel should remain domestically owned and operated.
Speaking to steel workers, Biden reiterated his commitment to preserving U.S. Steel as a wholly American company.
While concerns over the deal persist, U.S. Steel and Nippon Steel assured that the Pittsburgh-based firm would retain its American identity even after the $14.9 billion takeover.
The announcement had mixed effects on the stock market, with U.S. Steel shares closing down slightly and Nippon Steel shares closing slightly up in Tokyo.
The uncertainty surrounding the deal’s fate continues to influence market sentiment, reflecting concerns about its potential impact on the steel industry’s future and national security.
Despite Biden’s opposition, the CFIUS review process will proceed as usual, leaving the final decision on the deal’s approval uncertain.
The reaffirmation of U.S. Steel’s importance in domestic manufacturing underscores the administration’s commitment to safeguarding critical industries.
