Japanese Prime Minister Shigeru Ishiba urged U.S. President Joe Biden to approve Nippon Steel’s $15 billion acquisition of U.S. Steel, highlighting the deal’s importance to bilateral relations, according to sources familiar with the matter.
Biden expressed his opinion against the purchase, stating possible threats to national security, along with a major effect on U.S. labor organizations. The Committee on Foreign Investment in the United States has been asked to review the deal and provide a recommendation before President-elect Trump takes office on January 20.
Government agency CFIUS, responsible for evaluating foreign investments for security concerns, might accept the agreement. However, there would be restrictions and the assessment process might get prolonged. If none of this happens, it might suggest a rejection. The panel had already raised concerns about the vulnerability of the steel supply chain resulting from the proposed deal.
Emphasizing the geopolitical and financial advantages of the purchase, Ishiba addressed in a letter dated November 20 the reflection of Japan’s position as the biggest foreign investor in the United States. He noted that enhancing the economic cooperation fits the “unprecedented strength” of the Japan-U.S. relationship under Biden’s leadership. Nippon Steel has promised to invest in modern technologies and safeguard employment in line with American concerns. In the letter, Ishiba said, “The proposed acquisition will enable Japanese and U.S. steel companies to combine advanced technologies and increase competitiveness and will contribute to enhancing steel production capacity and employment in the United States.
