High-Level Government Panel Unable to Reach Consensus on Nippon Steel's Takeover of U.S. Steel

Investing.com– A high-level government panel could not reach a consensus on Nippon Steel's (TYO:5401) proposed takeover of U.S. Steel (NYSE:X), as reported by the Washington Post on Monday. The decision is now left to President Joe Biden.

The Committee on Foreign Investment in the United States (CFIUS) delivered a long-awaited decision on the nearly $15 billion deal on Monday evening but failed to come to a clear consensus, with Biden expected to reject it, according to the Washington Post.

The CFIUS ruled that allowing the Japanese firm to acquire the U.S. steelmaker could potentially curb domestic steel production, representing a national security risk.

Nippon Steel has pledged to make several concessions to address security concerns. However, the deal meets significant opposition from lawmakers and union groups who worry about job cuts at U.S. Steel.

Biden, along with incoming President Donald Trump, has also expressed opposition to the deal.

Due to the lack of consensus from CFIUS, Biden is now legally required to make a decision on the deal within 15 days. U.S. Steel and Nippon Steel have indicated they will legally challenge any potential rejection of the deal.