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In a bid to salvage the proposed acquisition of United States Steel Corp. (NYSE:X), Nippon Steel Corp. (OTC:NPSCY) Vice Chairman, Takahiro Mori, is reportedly set for a meeting with top U.S. officials in Washington.
What Happened: The meeting comes in the wake of Vice President Kamala Harris‘s assertion that U.S. Steel should remain “American-owned.” Despite the anticipated resistance from the Biden administration due to national security concerns, Mori is making a final attempt to rescue the Japanese group’s proposed $15 billion acquisition of U.S. Steel, Financial Times reported on Wednesday.
Sources familiar with the matter have indicated that the U.S. State Department and Defense Department have not agreed with the view that the deal would pose security risks.
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Mori is slated to meet with several officials from the Committee on Foreign Investment in the United States (CFIUS). The interagency committee, which includes the treasury secretary, state secretary, and defense secretary, reviews foreign investments from a national security perspective. If the committee identifies any issues, it will recommend to the U.S. president that the deal be blocked.
Nippon Steel and the Department of Treasury that overlooks CFIUS have yet to respond to Benzinga’s queries.
Why It Matters: The acquisition attempt comes amid a backdrop of opposition from key figures. Vice President Harris had earlier expressed her support for American ownership of U.S. Steel, amid ongoing foreign acquisition attempts.
U.S. Steel CEO, David Burritt, warned of potential plant shutdowns and a relocation of the company’s headquarters from Pittsburgh if the sale to Nippon Steel fails.
The Biden administration has also reportedly flagged the proposed $14.9 billion acquisition of U.S. Steel by Nippon Steel as a potential national security risk, which could lead to the deal being blocked.
Price Action: U.S. Steel closed at $31.22 on Monday, a 4.88% dip since its previous close while Nippon Steel closed at $7.20, as per Benzinga Pro.
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Image by Poetra.RH via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
