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In a bold move to secure President Joe Biden's blessing for its proposed acquisition of U.S. Steel, Japan's Nippon Steel has offered an unusual concession: giving the U.S. government veto power over potential cuts to U.S. Steel's production capacity.
This proposed safeguard comes as the Committee on Foreign Investment in the United States (CFIUS) has forwarded the decision to Biden, whose final call is due by January 7, 2024. If Biden remains silent, the merger will automatically be approved—a scenario more suspenseful than a steel mill showdown.
According to sources, Nippon Steel has pledged a 10-year commitment not to reduce production capacity at U.S. Steel's domestic facilities without approval from a Treasury-led review panel. Talk about bending metal—and rules!
"We've received the CFIUS evaluation, and the President will review it," a White House spokesperson confirmed Tuesday. Meanwhile, industry insiders are buzzing about the implications. Nippon Steel's strategy reflects its willingness to go the extra mile—or perhaps the extra ton—for regulatory approval. For Biden, this is not just about business but also politics. With his term ending on January 20, the decision has potential ripple effects on the U.S. economy and global trade relationships. Will Biden strike while the iron is hot, or let this deal forge its own path? Either way, Nippon Steel is clearly not leaving anything to chance.
