Nippon resubmits application for US assessment of USS acquisition

Nippon Steel has again asked the US government to reconsider its plan to acquire US Steel (USS).

The move could push back the Committee on Foreign Investment in the United States (CFIUS) review deadline by 90 days to December. Thus, the decision will be made after the presidential elections on November 5.

Many US lawmakers, including President Joe Biden, former President Donald Trump and Democratic presidential candidate Kamala Harris, have spoken out against the deal.

Last week, the Biden administration announced it would allow Nippon to resubmit its application to CFIUS to give the committee more time to examine the specific details of the proposed deal.

CFIUS issued a statement listing concerns about U.S. national interests if the deal were allowed to go ahead, prompting a stronger response from Nippon, including in-person meetings and a written rebuttal to CFIUS's concerns.

On September 24, Nippon also announced the sale of its entire stake to Posco Holdings, a South Korean steel producer. The US has been very critical of Nippon's role in challenging anti-dumping duties imposed on foreign steel in the US.

Nippons' decision to sever ties with Posco could bode well for CFIUS, given that the U.S. is actively taking action against several South Korean producers it believes are guilty of selling steel to the U.S. at below market prices. Nippon says the sale of its shares to Posco allows it to "improve asset performance."

Jake Sullivan, the US national security adviser, told reporters at an event on Saturday that Biden would allow the review process to run its course.