Multinational companies call for an objective review of the US Steel deal

The appeal appeared amid strong criticism of the acquisition of an American steel company

A group of multinational companies is calling on the US government to conduct an objective analysis of the proposed acquisition of US Steel by Japan’s Nippon Steel without political context, AFP reports.

The letter was published by the Global Business Alliance (GBA), which represents international companies in the United States. The appeal comes after the proposed deal worth more than $14 billion drew criticism from Washington and labor unions. In December last year, the White House called for a serious review of the takeover.

In a letter addressed to U.S. Secretary of Commerce Janet Yellen, the trade group asked the Committee on Foreign Investment in the United States (CFIUS), an interagency body established to review foreign acquisitions of U.S. firms, to objectively evaluate the acquisition.

««I urge you to remain steadfast in applying the time-tested principles of CFIUS – focusing only on actual facts to identify and mitigate potential national security risks,» said GBA President Nancy McLernon.

She also mentioned President Joe Biden’s stated commitment to open investment. According to the statement, efforts to delay or disrupt CFIUS reviews could have far-reaching consequences, harming America’s investment climate.

In addition, Reuters reports that Nippon Steel Executive Vice President Takahiro Mori met with members of the US Congress, including one of the opposing senators, to discuss the acquisition of US Steel, as the company is facing strong opposition to the deal. The criticism came not only from lawmakers (Democrats and Republicans), but also from the influential United Steelworkers labor union.

This deal will bring Nippon Steel closer to its goal of increasing its global steelmaking capacity to 100 million tons, while significantly expanding its production in the United States. The company said that Mori met with members of Congress to discuss how this acquisition will benefit all stakeholders, including American industry and workers. Nippon Steel is looking forward to the dialog and hopes for understanding throughout the process.

As GMK Center reported earlier, last December, it was announced that Nippon Steel would acquire United States Steel Corporation (US Steel) at a price of $55 per share, which amounts to approximately $14.9 billion, including debt.