Growing bipartisan opposition to US Steel purchase by Japanese might not be enough to block deal

The United States Steel Corp. Clairton Coke Works along the banks of the Monongahela River in Clairton, Pennsylvania, US, on Monday, Aug. 14, 2023. US Steel surged after it rejected a takeover offer from rival Cleveland-Cliffs Inc. to create one of the world’s biggest steelmakers, and said it will begin a review of its strategic options instead. Photographer: Justin Merriman/Bloomberg New York CNN — Bipartisan opposition is growing to the proposed $14.1 billion acquisition of US Steel by Japan’s largest steelmaker, but that is unlikely to be enough to block the purchase, according to an expert in foreign investment deals. A trio of Republican senators Tuesday called for a panel of US officials to block Nippon Steel’s takeover of US Steel due to national security concerns. Sens. JD Vance, Josh Hawley and Marco Rubio wrote Treasury Secretary Janet Yellen a letter on Tuesday warning the US Steel deal has “dire implications for the industrial base of the United States” and “was not entered into with US national security in mind.” Yellen chairs the Committee on Foreign Investment in the United States (CFIUS), an interagency panel empowered to review transactions involving foreign investment in America to determine the impact on national security. CFIUS members include the heads of the Department of Defense, State, Homeland Security and Justice. CFIUS “can and should block the acquisition of US Steel by NSC, a company whose allegiances clearly lie with a foreign state and whose record in the United States is deeply flawed,” Vance, Hawley and Rubio said. They argued CFIUS should launch a review of the deal unilaterally, especially because US Steel received competitive bids from American companies. The lawmakers note that domestic steel production is “vital to US national security” and cited steps taken by Republican and Democratic administrations to bolster the […]

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