Steel Mills

Japanese PM calls on Biden to OK USS deal

November 26, 2024

Japanese Prime Minister Shigeru Ishiba has asked President Biden to approve Nippon Steel’s $14.9-billion offer to buy Pittsburgh-based U.S. Steel, according to a report in Reuters.

Recall that the final hurdle for the deal’s closing is the US Committee on Foreign Investment’s (CFIUS) national security review, for which a decision is expected by the end of December.

“Japan stands as the largest investor in the US, with its investments showing a steady upward trend,” Ishiba said in a letter to Biden seen by Reuters. Sources said it was sent on Nov. 20.

“We respectfully ask for the US government to approve the planned acquisition by Nippon Steel so as not to cast a shadow on the achievements you have accumulated over the past four years,” the letter continued.

A spokesman for Nippon declined to comment on the letter to SMU.

House Republicans request CFIUS records be maintained

Regarding that CFIUS review, four House Republicans have requested that Biden’s administration hold on to records of the review, according to a Bloomberg report.

The news agency reported that a letter was sent to Treasury Secretary Janet Yellen and Commerce Secretary Gina Raimondo on Nov. 22. The Republicans said that developments in the CFIUS process “have called into question the integrity of its decision-making process.”

Additionally, the letter points to “broader issues about whether the statutory mandate of CFIUS to prioritize national security considerations has been subordinated to political interests.”

Burritt touts benefits of deal

Finally, David Burritt, U.S. Steel president and CEO, recently touted the benefits of the company’s proposed merger with Nippon Steel in an interview with Pittsburgh’s WTAE.

“If we were going to paint a picture of the best deal, this would be it because it checks all the boxes in terms of strengthens national security, strengthens economic security, strengthens job security,” he said in the interview dated Nov. 22 on WTAE’s website.

He also spoke to the recent Commerce decision that Nippon dumped steel in the US in 2022-23.

“Well, I say this about that. You know, anything that’s happened in the past, actually, this transaction is a good thing because a national security agreement would require Nippon to follow the rules that U.S. Steel follows, and they’ve even put in writing that they would want to make sure that there was an independent US citizen audit process to make sure all these transactions were examined,” Burritt said.

He then noted how critical the deal was to continued investments in the company.

“We’ve got to get this thing done, because if it doesn’t get done, we’re not going to be able to make these investments here,” he said in the interview. “And just to be clear, we won’t.”

As previously reported, Nippon has reiterated a dedication to blast-furnace steelmaking in the US, no less than a $2.7-billion investment in USS facilities represented by the United Steelworkers (USW) union, as well as a commitment to “protecting American interests.”

Nippon has said it will consider suing the US government if the deal is blocked.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.