By David Lawder

RALEIGH, North Carolina (Reuters) – U.S. Treasury Secretary Janet Yellen on Thursday stated that the U.S. welcomes foreign direct investment and rigorously reviews deals for national security concerns, but declined to comment on reports that President Joe Biden’s administration is poised to block the U.S. Steel-Nippon Steel merger.

Speaking to reporters in North Carolina, Yellen noted that the ultimate decision regarding national security concerns related to foreign acquisitions rests with Biden.

On Wednesday, Reuters and other news outlets reported that the Biden administration was likely to block Nippon Steel’s $14.9 billion acquisition of U.S. Steel on national security grounds.

According to sources familiar with the notice, the administration informed Nippon Steel in a letter on Saturday that the merger would pose a national security risk by potentially harming the American steel industry.

The deal faces opposition from multiple Democrats and Republicans, with Vice President and Democratic presidential candidate Kamala Harris stating on Monday that she wants U.S. Steel to remain “American owned and operated.” Her Republican rival, Donald Trump, has pledged to block the deal if elected.

When asked about the situation, Yellen acknowledged, “The United States has the environment in which we very much welcome foreign direct investment. We’re seeing a huge amount of it in firms in North Carolina that have been here for a long time and coming in response to the Inflation Reduction Act.”

She emphasized that the U.S. has a “rigorous” review process for assessing the national security implications of such deals. “That’s a process that is intended to advise the president, who makes the ultimate decisions on this,” she added.