The US National Security Committee, which is reviewing Nippon Steel's $14.9 billion bid to buy US Steel, has until September 23 to rule on whether the White House should block the deal. The Committee on Foreign Investment in the United States has until that date to complete its second 90-day review of the proposed takeover of US Steel by a Japanese company.
On that date, CFIUS (Committee on Foreign Investment in the United States) officials could grant the companies' request for extending the review for another 90 days, which would delay a politically sensitive decision until after the Nov. 5 election.
If the commission doesn't, it could approve the deal, perhaps with measures to address national security concerns, or it could recommend President Joe Biden to block it.
The deal has become a political hot potato and faces high-profile opponents, including Biden, Democratic presidential nominee and Vice President Kamala Harris and Republican Donald Trump. They oppose foreign ownership of US Steel, which produces a strategically and symbolically important commodity used to build ships, trains and infrastructure.
“The President's position is that it is vital for US Steel to remain an American steel company. which is domestically owned and operated,” said White House adviser Saloni Sharma.
US Steel is headquartered in Pennsylvania, a key swing state in the presidential election. The United Steel Workers union, which backed Harris, opposes the deal.
As the clock ticks toward the Sept. 23 deadline, politics and uncertainty surrounding the deal are front and center. The companies tried to save the acquisition after the commission said it would harm the security of U.S. steel supplies in a letter dated Aug. 31.
The companies responded in a 100-page letter that the deal would lead to increased U.S. steel production , and asked for an extension to address concerns.
CFIUS and Nippon Steel declined to comment, and US Steel did not respond to a request for comment.
In the coming days, a senior administration official said no decision expected. The Washington Post reported Friday that the decision could be delayed until after the election.
