CFIUS, which assesses foreign investment in terms of national security threats, sent a 17-page letter to the companies on Saturday outlining the potential outcomes of the settlement. The committee warned that Nippon’s actions could lead to a reduction in domestic steelmaking capacity, jeopardizing the steel industry’s ability to meet national security needs.
In response to the committee’s concerns, Nippon Steel notified CFIUS last Tuesday that U.S. Steel plans to invest heavily in its facilities and maintain and potentially expand its domestic steelmaking capacity.
Nippon Steel said the acquisition would not result in the relocation of US Steel’s production or jobs outside the United States and that it would not interfere with US Steel’s business decisions.
However, CFIUS remains concerned about the potential loss of commercial production capacity and skilled labor that are vital to the U.S. steel industry. The Committee also noted risks associated with Nippon Steel’s expansion of operations in India, where production costs are significantly lower than in the United States.
Another issue CFIUS raised was Nippon Steel’s approach to seeking commercial protections for products manufactured in the U.S. The committee noted that the company has sometimes opposed such measures and that if the agreement were to be reached, U.S. Steel would have fewer commercial remedies to address unfair practices.
Nippon Steel has proposed a detailed draft memorandum to address CFIUS’ concerns. Nippon Steel, U.S. Steel, the White House and the Treasury Department, which oversees CFIUS, had no immediate comment.
Reuters contributed to this report.
This article has been AI-assisted, translated, and reviewed by an editor. For more information, see our Terms and Conditions.
