Nippon Steel Proposes Veto Right to U.S. Government to Secure Acquisition of U.S. Steel - Washington Post

Investing.com -- According to reports, Nippon Steel proposed granting the U.S. government a veto right against any reduction in U.S. Steel's production capacity in a document sent to the White House on Monday to seek approval for the acquisition of U.S. Steel. This move is aimed at appeasing the Committee on Foreign Investment in the United States (CFIUS), which expressed concerns last week regarding the potential impact of Nippon Steel's $14.9 billion acquisition of U.S. Steel. The committee warned that this could lead to a decline in domestic steel production, posing a risk to U.S. national security.

This proposal from the Japanese steelmaker represents a last-ditch effort to secure approval from President Joe Biden for the takeover of the iconic American steel company. This approach reflects Nippon Steel's commitment to safeguarding U.S. Steel's production capacity in response to the concerns raised by CFIUS.