President Biden is getting ready to make a big call soon – possibly as early as Friday – on whether or not to approve Nippon Steel’s massive $14.9 billion deal to buy U.S. Steel. This decision has been building up for some time, and it’s a topic that’s been on everyone’s mind, from industry insiders to regular Americans.
Biden has made his stance clear before, saying that it’s crucial for U.S. Steel to stay an American-owned and operated company. But recently, he’s had lengthy talks with his top advisers about the potential impact of the deal. Even Secretary of State Antony Blinken has weighed in on the matter, speaking directly with the president.
If Biden decides to block the deal, U.S. Steel is expected to fight back. The company might take legal action, even against the Biden administration itself. And Cleveland-Cliffs, which lost out on its own bid to buy U.S. Steel, could get involved too, along with some key players like Lourenco Goncalves, Cleveland-Cliffs’ president, and Dave McCall, the president of U.S. Steelworkers.
To try to get the deal across the finish line, Nippon Steel made a move this week to calm any concerns. The Japanese steel giant proposed a solution that would give the U.S. government the power to approve or veto any changes to U.S. Steel’s production capacity. This is a shift from a previous proposal, which suggested an independent, majority-American board would have the final say. The new idea gives the U.S. government full control over decisions related to production.
As part of the proposal, Nippon Steel has promised a 10-year guarantee that it won’t cut production at U.S. Steel’s mills across the U.S. without approval from the Committee on Foreign Investment in the United States (CFIUS), a group that’s led by Treasury Secretary Janet Yellen.
The deal, which was originally set to close by January 7, 2025, has already been delayed by Nippon Steel. Now, they’re hoping to get it finalized sometime in the first quarter of next year.
Not everyone is on board with the deal. Trade Representative Katherine Tai, a member of CFIUS, has voiced concerns about how it might impact jobs and labor. But on the flip side, other members of CFIUS, including departments like Justice, Treasury, and State, aren’t opposed to it.
So, the ball is in Biden’s court. Will he approve the deal or block it? Only time will tell, but it’s definitely a decision that will have a major impact on the steel industry and the American workforce. Stay tuned!