Nippon Steel, a Japanese steel giant, has been eyeing a takeover of the US steelmaker, US Steel, for quite some time now. In a last-ditch attempt to get the approval of President Biden before President-Elect Donald Trump takes over office, Nippon Steel is willing to give the US government a veto over any reduction in the production capacity of the American steelmaker.
This proposal came after the Committee on Foreign Investment in the United States warned the government last week that Nippon Steel’s $14.9 billion takeover of US Steel could lead to a decline in domestic steel production and that it would pose a significant risk to the national security of the USA. Moreover, the president has also opposed the takeover publicly for months now, unlike many of his advisors who favor the deal. Biden’s approach to the deal is influenced by the president of the United Steelworkers union, David McCall, who has blasted Nippon Steel’s bid as bad for workers.
Biden, who faces a Jan 7 deadline to make the final decision regarding the deal, could condition the approval based on Nippon Steel complying with a set of additional requirements other than the veto. The requirement will be to ensure the preservation of American jobs in the organisation. It’s worth noting that in the past, Biden proposed to block the deal. Now, hammering these details could push the matter past inauguration day, and for the first time, it seems like the final decision might fall into the lap of Donald Trump.
