US decision on Nippon’s bid for US Steel pushed back until after election

THE US national security panel reviewing Nippon Steel’s bid for US Steel will let the companies refile their application for approval of the deal, a source familiar with the matter said, delaying a decision on the deal until after the presidential election.

The move offers a ray of hope for the companies, whose deal appeared set to be blocked when the Committee on Foreign Investment in the United States (CFIUS) alleged on Aug 31 that the transaction posed a risk to national security by threatening the steel supply chain for critical US industries.

CFIUS needs more time to understand the impact of national security and engage with the parties, the source said. Refiling sets a new 90-day clock to review the proposed tie-up and make a decision.

The expected demise of the deal in late August prompted an outpouring of support, including a letter from business groups including the US Chamber of Commerce, raising concerns the transaction was being influenced by political pressure.

Earlier in September, Vice-President and Democratic presidential candidate Kamala Harris said at a rally in Pennsylvania, the swing state where US Steel is headquartered, that she wants US Steel to remain “American owned and operated”.

Her Republican rival Donald Trump has pledged to block the deal if elected.

Nippon Steel declined to comment. CFIUS and US Steel did not immediately respond to requests for comment from Reuters. REUTERS