Biden administration gives Japanese steelmaker more time to make case for controversial deal
Japanese Steelmaker Expected to Re-file Application for US Acquisition Review #
A major Japanese steelmaker is anticipated to re-submit its application for a national security review of its $15 billion takeover bid of a prominent US steel company. This move is expected to provide an additional 90 days to finalize the acquisition of the American rival, amidst growing political opposition during an election year.
This unexpected development allows the companies involved to reset the timeline, potentially keeping the controversial deal alive. However, significant political pushback remains, with high-profile political figures from both major parties expressing opposition to the deal.
A team of Cabinet-level appointees has been examining the takeover for several months on national security grounds. With the White House signaling it would block the deal, and officials wanting to operate outside the pressure of political calendars, an extension of the timeline appeared to be the best outcome.
The proposed takeover has become a contentious political issue. Multiple Rust Belt Democrats have also voiced opposition to the deal, along with a major steel workers union.
Earlier this month, the US company stated it would be forced to lay off workers and close mills without the Japanese firm’s backing. The Japanese Prime Minister has indicated that legal reviews would determine the deal’s outcome.
Several business groups have recently warned of the risks of politicizing a process that was created to study national security risks on their merits.
The US steel company put itself up for sale in 2023 after receiving an unsolicited $7 billion takeover offer from another American steel producer. The $14.9 billion deal with the Japanese steelmaker resulted from that sale process.