Japan’s Nippon Steel China assets under scrutiny over US Steel deal, Bloomberg reports

By Thomson Reuters Feb 22, 2024 | 3:01 PM

(Reuters) – The Biden administration is examining Nippon Steel’s connection to China, in relation to the Japanese company’s planned deal to acquire American rival United States Steel, Bloomberg News reported on Thursday, citing people familiar with the matter.

The administration sees its priority as protecting U.S. industry and is worried about Nippon Steel’s exposure to China, the report said.

The world’s fourth-largest steelmaker’s $14.9 billion deal to buy its U.S. rival has drawn criticism from some of the Democratic and Republican lawmakers and the powerful United Steelworkers union.

The White House has also promised “serious scrutiny” of the deal given the company’s role in U.S. steel production, which the government regards as critical to national security.

It is not clear whether the China assets of Nippon Steel will be an explicit part of the Committee on Foreign Investment in the United States (CFIUS) review, the report said.

Nippon Steel’s U.S. representatives did not immediately respond to a Reuters request for comment.

(Reporting by Kannaki Deka in Bengaluru)