Despite revamped proposals, Nippon Steel deal on track to be blocked, letter shows

December 27, 2024

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Despite revamped proposals, Nippon Steel deal on track to be blocked, letter shows

On December 18, 2024, Nippon Steel’s $14.9 billion bid for U.S. Steel faces potential rejection from a powerful panel despite multiple attempts to address national security concerns. The latest development comes in the form of a letter obtained by Reuters, revealing the uphill battle the Japanese company is facing in gaining approval for the acquisition.

The Committee on Foreign Investment in the United States (CFIUS) has been scrutinizing the deal and has until December 23 to either approve it, extend the review process, or recommend President Joe Biden to block it. With the panel members at an impasse, the decision now rests with Biden, who has been vocal about his opposition to the deal from the start.

The failure to secure approval from CFIUS highlights the complexities and sensitivities surrounding cross-border acquisitions, especially in strategic sectors like steel production. National security considerations are paramount in such deals, and any perceived risks can lead to significant regulatory hurdles.

For Nippon Steel, the potential rejection of the bid could have far-reaching implications on its growth strategy and global expansion plans. The company’s efforts to address security concerns and salvage the deal have been met with resistance, underscoring the challenges of navigating the regulatory landscape in foreign markets.

As the deadline approaches and the fate of the acquisition hangs in the balance, all eyes are on President Biden to make a final decision. The outcome will not only impact the two companies involved but also set a precedent for future foreign investments in the United States. Stay tuned for further developments as this high-stakes drama unfolds.

See also Rep. Alexandria Ocasio-Cortez’s tough Bronx persona is under fresh scrutiny with a resurfaced childhood nickname from her suburban upstate New York upbringing casting doubt on that publicly portrayed image. The progressive champion’s latest spat with President Donald Trump over the Iran strikes again called into question her true upbringing when she declared on X she was a “Bronx girl" to make her a point against the president. The 35-year-old congresswoman wrote in part on X: "I’m a Bronx girl. You should know that we can eat Queens boys for breakfast. Respectfully," she said, referring to the president’s upbringing in Queens as she called for his impeachment over his decision to bypass Congress in authorizing U.S. strikes on Iranian nuclear facilities. Ocasio-Cortez was born in the Bronx but moved to Yorktown – which is nearly an hour outside New York City -- when she was 5 years old and went on to attend Yorktown High School where she graduated in 2007. She was considered an accomplished student there and well thought of by teacher Michael Blueglass, according to a 2018 report by local media outlet Halston Media News. “There, known by students and staff as ‘Sandy,’ she was a member of the Science Research Program taught by Michael Blueglass," the report states. “She was amazing," Blueglass said, per the report. “Aside from her winning one of the top spots and going to the [Intel International Science and Engineering Fair], she was just one of the most amazing presenters in all of the years I've been at Yorktown. Her ability to take complex information and explain it to all different levels of people was fantastic." After high school, Ocasio-Cortez attended Boston University, where she majored in economics and international relations, per the report. Ocasio-Cortez’s “Sandy" nickname — which carries a more suburban and preppy tone — appears to undercut her politically crafted image as a tough, inner-city fighter, one she has portrayed since her famous 2018 congressional campaign where she eventually ousted former 10-terms Congressman Joe Crowley. New York GOP Assemblyman Matt Slater, who now represents Yorktown, added to the scrutiny of Ocasio-Cortez’s persona in the wake of her brash with Trump and released images of Ocasio-Cortez from his high school yearbook. He claimed he and the rising Democratic star attended Yorktown High School at the same time when she was a freshman and he was a senior. "I saw the attacks on the president and her [Ocasio-Cortez] claims that she's a big, tough Bronx girl," said Slater. "To sit there and say that she’s a Bronx girl is just patently ridiculous." "Everybody in our community knows this is just a bold-face lie," said Slater on "Fox & Friends First" last week. "She grew up in Yorktown, she was on my track team." "She's lying about her background, she's lying about her upbringing," Slater claimed. Slater’s post sent social media ablaze and prompted Ocasio-Cortez to respond after an image if her family’s home was posted online. “I’m proud of how I grew up and talk about it all the time," Ocasio-Cortez wrote on X Friday responding to the post. “My mom cleaned houses and I helped. We cleaned tutors’ homes in exchange for SAT prep." “Growing up between the Bronx and Yorktown deeply shaped my views of inequality & it’s a big reason I believe the things I do today!"