Nippon Steel Offers $14.9 Billion Deal with 10-Year Guarantee, Awaiting Biden's Decision by January 7

Dec 31, 2024, 10:26 PM

Nippon Steel has proposed giving the U.S. government veto power over any reduction in U.S. Steel's production capacity as part of a last-ditch effort to secure President Joe Biden's approval for its $14.9 billion acquisition of the American steelmaker. The proposal includes a 10-year guarantee to maintain production levels at U.S. Steel's mills in states such as Pennsylvania, Indiana, and Alabama. This move comes after the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on the national security implications of the deal, leaving the decision to Biden. The acquisition has faced opposition from both Biden and President-elect Donald Trump, who have vowed to block it. Despite the opposition, U.S. Steel shares surged by 14% following the report of Nippon Steel's proposal, which also includes a $1 billion pledge to improve U.S. Steel and an offer of $55 per share. Biden has until January 7 to make a final decision on the deal.