Japanese Prime Minister urges US to Approve Deal Between Nippon Steel and US Steel

SEATTLE (Scrap Monster):  Japanese Prime Minister Shigeru Ishiba has sent a letter to US President Joe Biden asking him to approve the Nippon Steel-U.S. Steel deal so as not to harm recent efforts to strengthen ties between the two countries. This was reported by Reuters, citing sources familiar with the matter.

Biden opposed the takeover of the American steel company. The issue has been referred to the Committee on Foreign Investment in the United States (CFIUS), a body that evaluates foreign investments in terms of potential risks to national security.

CFIUS is expected to make a decision in December. The Committee may approve the transaction with conditions to mitigate security concerns, recommend blocking it, or continue the review process.

CFIUS expressed concerns about the deal in a letter to the companies on August 31. The committee suggested that it could pose a national security risk by jeopardizing the steel supply chain for critical US industries. However, the review process was extended until after the election to give the committee more time to evaluate and work with the parties involved.

US President-elect Donald Trump, who will take office on January 20, has publicly stated his intention to block the deal.

In a letter dated November 20 and seen by Reuters, Ishiba emphasized Japan’s role as the largest investor in the United States, noting the mutual benefits of continued Japanese investment. He also praised Biden’s leadership in strengthening bilateral relations over the past four years, urging the US administration to approve the deal to preserve these achievements.

The U.S. Embassy in Japan declined to comment on the issue, and the agency did not receive any from other parties.

As GMK Center reported earlier, the US Department of Commerce has raised import duties on hot-rolled steel from Nippon Steel after a review. According to the preliminary decision published in the Federal Register, the agency set a weighted average dumping margin of 29% for the Japanese steelmaker. The updated tariff, if confirmed by the final decision, will significantly increase the duties on Nippon Steel’s hot-rolled products from the previous level of 1.39%.

The announcement came as Nippon Steel promised the United Steelworkers union not to import slabs to the US from its international mills as part of its commitment to buy US Steel.

 Courtesy: www.gmk.center