According to media reports, the Biden administration is divided over Nippon Steel’s acquisition of U.S. Steel. The U.S. Department of State, Department of the Treasury, and Department of Defense believe the deal does not pose a national security risk, but President Biden is still expected to block the transaction.
In December last year, Nippon Steel announced a $14.9 billion bid to acquire U.S. Steel. The deal has faced significant opposition domestically and is under scrutiny by the Committee on Foreign Investment in the United States (Cfius).
Cfius, led by the U.S. Department of the Treasury, is an interagency government body responsible for reviewing foreign investments in the U.S. to assess potential national security risks.
In March this year, Biden publicly opposed the deal, stating that U.S. Steel must remain an American-owned and domestically operated company. President-elect Donald Trump also declared he would immediately block the deal upon taking office in January.
In September, Cfius preliminarily identified national security risks that could not be mitigated but did not officially submit its findings to Biden. The president extended the review period by 90 days, setting the final deadline for December 23.
Sources indicate that the Department of State, Treasury, and Defense have not issued final opinions, with some officials arguing that the deal poses no national security risks. Biden’s opposition is reportedly politically motivated. U.S. Trade Representative Katherine Tai opposes the deal, while the Departments of Commerce and Energy also have reservations.
Regardless of the final Cfius review outcome, Biden is almost certain to block the deal. If Cfius determines the transaction is not risky, Biden may have to resort to other mechanisms to halt it.
Analysts believe Biden’s initial opposition to the acquisition was aimed at securing blue-collar votes. Despite losing the election, Biden has maintained his stance.
Observers suggest Biden is unlikely to change his position because he knows Trump would block the deal if he takes office. Even if Biden approved the transaction, it would likely be overturned by Trump. Some speculate Trump might attempt to secure better terms for union workers and take credit for the outcome.
[Source – 上海有色网] 美国钢铁收购案如何收场？拜登政府据称出现分歧 https://news.smm.cn/news/103086090
