U.S. Treasury Updates on Nippon Steel's Proposed Acquisition of U.S. Steel

(Reuters) – The U.S. Treasury has informed Japan's Nippon Steel that the panel reviewing its proposed $14.9 billion purchase of U.S. Steel has not yet reached an agreement on how to address security concerns, as reported by the Financial Times on Sunday.

Treasury, which leads the Committee on Foreign Investment in the U.S. (CFIUS), wrote to both companies on Saturday indicating that the nine agencies on the panel were struggling to reach a consensus ahead of the deadline to submit a recommendation to President Joe Biden. The report cited several sources familiar with the talks.

CFIUS, a powerful committee responsible for reviewing foreign investments in U.S. firms for national security risks, has until Dec. 22 to decide whether to approve, block, or extend the timeline for the deal's review, according to Reuters.

U.S. Steel and CFIUS did not immediately respond to Reuters' requests for comments on the Financial Times report, while Nippon Steel declined to comment.

The acquisition has faced opposition within the U.S. since it was announced last year, with both Biden and his incoming successor Donald Trump publicly indicating their intentions to block the purchase.

In September, CFIUS informed both companies that the deal would create national security risks as it could harm the supply of steel essential for critical transportation, construction, and agriculture projects, according to a letter reviewed by Reuters.