Biden plans to block the merger of Nippon Steel and US Steel – Bloomberg

US President Joe Biden plans to officially block the sale of US Steel to Japan’s Nippon Steel for national security reasons after the Committee on Foreign Investment in the United States (CFIUS) makes its decision. Bloomberg reports, citing sources.

The CFIUS, which has been considering the proposed takeover for most of this year, is expected to deliver its decision to Biden by December 22-23.

It is not yet clear what exactly the committee’s review will be. However, it is noted that any appeal to the president indicates that at least one CFIUS member believes the deal poses a risk. Nippon Steel and US Steel are ready for a legal challenge if Biden decides to block the merger, some sources say.

The exact time when Joe Biden will make any statement is unknown. The president has 15 days from the moment the case is referred to him to announce his decision. According to insiders, another extension of the CFIUS process, which would shift the decision to the next administration, is not expected.

In early December, Nippon Steel reaffirmed its confidence that the acquisition of US Steel could be completed by the end of 2024 if the deal goes through the proper procedures and is approved by the Biden administration.

As GMK Center reported earlier, Japanese Prime Minister Shigeru Ishiba, according to Reuters, sent a letter to the US President asking him to approve the deal so as not to harm recent efforts to strengthen ties between the two countries.