U.S. Steel, Nippon get extension from national security panel on deal decision

The U.S. national security panel reviewing a $14.9 billion sale of U.S. Steel to a Japanese firm has extended its decision deadline, likely ensuring the proposal will live past the Nov. 5 election.

Several outlets have reported the Committee on Foreign Investment in the United States, comprising numerous federal department heads and White House officials, will let the companies refile to restart a 90-day clock.

The secretive review was scheduled to end by Sept. 23 with a recommendation to President Joe Biden, who cannot act on the deal until this happens.

CFIUS reportedly needs more time to understand the national security implications of the iconic American steelmaker coming into the hands of Nippon Steel, which is based in one of the country’s closest allies.

The committee previously noted the merger could harm domestic steel production and interrupt supply chains for steel, a key resource in defense, transportation and other key sectors.

Though it appears the high-stakes political drama may cool off for a few months, stakeholders have hardly budged.

Biden has not reversed his opposition, and presidential candidates Kamala Harris and Donald Trump have spoken against the takeover in recent weeks.

On Tuesday, the United Steelworkers leadership asserted “the facts have not changed” and promises made by Nippon regarding job security and plant investments cannot be counted on.

The letter from International President David McCall and Chairman of the Negotiating Committee Mike Millsap blamed the delay on suggestions from U.S. Steel CEO David Burritt that his company could pull up stakes in Western Pennsylvania without a deal.

“Unfortunately, Burritt’s threats had some effect,” the United Steelworkers leaders said. “They made some of our members understandably fearful for their jobs and made some public officials second-guess their opposition to the transaction.”

Nippon has pledged to preserve jobs and plants, including at the Mon Valley Works, through 2026. It also has pledged more than $2.7 billion to upgrade union-run facilities if that deal gets the green light, including $1 billion-plus in Western Pennsylvania.

A spokesperson for Nippon declined to comment.

As part of a financial report released Thursday, Burritt touted Nippon’s promised upgrades and said he is “heartened by the outpouring of support from our employees and communities” who view the transaction as “the best deal for American steel,” a common refrain from the company.