Official announcement from the White House or U.S. government agencies

Nippon Steel Offers U.S. Veto, 10-Year Guarantee in $14.9 Billion U.S. Steel Deal Amid Trump Opposition

Jan 1, 2025, 12:50 AM

Nippon Steel has proposed granting the U.S. government veto power over any reductions in U.S. Steel's production capacity as part of its effort to secure 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 facilities in states such as Pennsylvania, Indiana, and Alabama unless approved by a Treasury-led panel. This move follows a deadlock by the Committee on Foreign Investment in the United States (CFIUS), which cited national security concerns and referred the decision to President Joe Biden. Biden faces a January 7 deadline to approve or block the deal, with automatic approval if no action is taken. The acquisition has sparked significant opposition, including from the United Steelworkers union, environmental groups, and President-elect Donald Trump, who has vowed to block the deal. Critics have raised concerns over national security and environmental impact, while proponents, including some of Biden's advisors, argue that the deal would bolster U.S. steel production, secure jobs, and strengthen U.S.-Japan economic ties. Nippon Steel has also pledged a $2.7 billion investment in U.S. Steel's facilities.