Nippon Steel has reapplied to the US government for another review of its US Steel (USS) acquisition plan, Kallanish learns.
The move may push back the review deadline at the Committee on Foreign Investment in the United States (CFIUS) by 90 days, into December. Therefore, the decision would arrive after the 5 November presidential election.
Multiple US lawmakers, including President Joe Biden, former president Donald Trump and Democratic presidential nominee Kamala Harris, have voiced opposition to the deal (see Kallanish passim).
Last week, the Biden administration announced it would allow Nippon to refile with the CFIUS, in order to give the committee more time to scrutinise the specific details of the proposed deal (see Kallanish passim).
CFIUS issued a statement listing concerns for US national interests should the deal be allowed to transpire, prompting stronger reactions from Nippon, including in-person meetings and a written rebuttal to the CFIUS concerns (see Kallanish passim).
On 24 September, Nippon also announced that it is selling its entire portion of Posco Holdings, a South Korean steelmaker. The US has been very critical of Nippon’s role in contesting antidumping duties placed on foreign steel in the US.
Nippons’ move to break from its Posco involvement may bode well with the CFIUS given that the US has been actively pursuing action against multiple South Korean producers it finds guilty of selling steel in the US below market value (see Kallanish passim). Nippon says selling its shares of Posco allows it to “improve asset efficiency.”
Jake Sullivan, the US national security adviser, told reporters at an event on Saturday that Biden would allow the review process to run its course (see Kallanish passim).
Kristen DiLandro USA
