Water tower at U.S. Steel’s Edgar Thomson Works steel mill in Braddock, Pennsylvania, September 4, 2024.
Justin Merriman | Bloomberg | Getty Images
Japan’s Nippon Steel has proposed giving the U.S. government a veto over any potential cuts. US SteelThe increase in production capacity at the company comes as part of efforts to win President Joe Biden’s approval for the acquisition of the U.S. steelmaker, sources said on Tuesday.
The Committee on Foreign Investment in the United States last week left it up to Biden to decide whether to approve or block the deal.
Biden will leave office on January 20th, but he has until January 7th to decide on a takeover proposal. If Biden takes no action, the merger would be automatically approved.
“We will receive the CFIUS assessment and the President will review it,” a White House spokesperson said Tuesday.
The Washington Post earlier reported that in its proposal, Nippon Steel pledged for 10 years not to cut capacity at U.S. Steel’s domestic plants unless approved by a Treasury-led review committee. .
U.S. Steel shares soared after the Washington Post report, closing up 9.5% on Tuesday.
US Steel and Nippon Steel did not respond to Reuters requests for comment.
