Nippon Steel has declined to pay 14.9 billion yen to U.S. Steel despite extensive discussions with U.S. officials and the presentation of three amendments aimed at addressing national security concerns. According to a letter reported by Reuters, Nippon Steel has been unable to secure approval from the influential committee that evaluates foreign investments for their potential national security implications.
This situation holds significant importance as it creates a pathway for U.S. President Joe Biden, who has historically opposed the deal, to intervene and potentially block it. The Committee on Foreign Investment in the United States (CFIUS) is currently reviewing the deal and has established a deadline of December 23rd. By this date, the committee must either approve the agreement, extend their review, or suggest that Biden reject it. If disagreements persist among the involved agencies, as indicated in the letter, the decision will be forwarded to the President for resolution.