US, Japan: "Even for allies, US Steel acquisition to undergo thorough national security impact review"

Lael Brainard, White House National Economic Council Chair
US Steel and Nippon Steel Request CFIUS Review

The White House in the United States announced on the 21st (local time) that it will closely examine the national security implications of Nippon Steel's attempt to acquire the American steel company US Steel.

Leyal Brainerd, Chair of the White House National Economic Council (NEC), stated in a press release that "US Steel was an essential part of the arsenal of democracy during World War II and remains a key element of domestic steel production critical to our national security."

He said, "President Biden believes that the potential acquisition of this iconic American company by a foreign firm, even one from a close ally, must be thoroughly investigated for its impact on national security and supply chain reliability." He added, "This appears to be the type of transaction that the Committee on Foreign Investment in the United States (CFIUS), empowered by Congress and strengthened by the Biden administration, is prepared to scrutinize closely. The administration is ready to carefully review the results of any investigation and take appropriate action if necessary."

CFIUS reviews the impact of foreign investments, such as mergers and acquisitions (M&A) of U.S. companies by foreigners, on national security. If there are security concerns, it can request corrective measures or recommend the president block the transaction. It is reported that US Steel and Nippon Steel requested a review by CFIUS on the same day.

Previously, politicians from the declining northern industrial region known as the "Rust Belt" opposed the sale of US Steel and urged CFIUS to block the deal. Although it was widely expected that the U.S. would be unlikely to block the acquisition of US Steel by a Japanese company?an ally with whom cooperation is necessary to counter China?the Biden administration has announced a thorough investigation.

Chair Brainerd emphasized, "Steel is the foundation of American manufacturing in everything from infrastructure to automobiles to a clean energy future," adding, "President Biden has taken action to protect American steel companies from unfair and market-distorting trade practices by China and other countries."

This content was produced with the assistance of AI translation services.