Washington to review Nippon Steel takeover of U.S. Steel after election

Biden and Democratic presidential nominee Kamala Harris have both said they oppose the $14.9 billion agreement, with reports earlier this month saying the president intended to block the deal.

But U.S. Steel has warned that if the sale is blocked it could shut facilities in Pennsylvania—perhaps the most critical swing state in the election in which Harris is up against Republican Donald Trump.

Biden had been awaiting the final decision from a national security body headed by Treasury Secretary Janet Yellen that reviews foreign takeovers of U.S. firms, called the Committee on Foreign Investment in the United States (CFIUS).

Nippon Steel had now asked to be allowed to resubmit its application, a person familiar with the situation told AFP.

“We understand CFIUS is granting that request,” the person said on condition of anonymity.

The review body “needs more time to understand the full national security impact of the transaction, including to the resilience of critical supply chains, and engage with the parties.”

U.S. media said Nippon Steel would now have another three months to make its case, pushing any decision past election day on November 5.

The White House insisted there was “no so-called delay” since the agency had never said when it would be delivering its findings.

“The president’s and the vice president’s position is that it is vital for U.S. Steel to remain an American steel company that is domestically owned and operated,” White House spokeswoman Saloni Sharma.

Trump has also vowed to block the deal.

Pennsylvania is one of seven battleground states that will decide the U.S. election, and is possibly the one on which the whole result will hinge.

Last week major Japanese and U.S. business groups urged Yellen not to succumb to political pressure when reviewing the deal.

Shares of U.S. Steel sank earlier this month on reports that Biden planned to block it.