The potential merger between Nippon Steel and US Steel has been referred to US President Joe Biden, giving him 15 days to decide. The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments for national security risks, referred the deal after failing to reach a consensus. Biden has previously expressed opposition to the merger, and if he takes no action within 15 days, the merger would be unexpectedly approved.
The White House confirmed receiving the CFIUS evaluation and stated President Biden will review it. This referral potentially allows the deal to be blocked before President-elect Donald Trump takes office on January 20th, as Trump has also opposed the merger. Both companies have stated their intention to close the deal before the end of 2024. Nippon Steel urged Biden to consider their efforts to address national security concerns and their commitments to US Steel's growth. US Steel expressed hope that Biden would approve the transaction, which they believe enhances US national and economic security. If the deal collapses, Nippon Steel faces a $565 million penalty to US Steel and has indicated a potential legal challenge against the US government