Nippon Steel offers US government veto power in bid for US Steel approval, WaPo reports

(Reuters) – Japan’s Nippon Steel has proposed giving the U.S. government veto power over any potential cuts to U.S. Steel’s production capacity, as part of its efforts to secure President Joe Biden’s approval for acquiring the American steelmaker, the Washington Post reported on Tuesday.

Last week, The Committee on Foreign Investment in the United States (CFIUS) referred the decision to approve or block the deal to President Biden.

Biden, who will leave the office on Jan. 20, must decide on the deal by Jan. 7, and if he takes no action, it would result in the merger’s automatic approval.

In its proposal, Nippon Steel has pledged a 10-year commitment not to cut production capacity at U.S. Steel’s mills in the country, unless approved by a Treasury-led review panel, the report said, citing a document sent to the White House.

U.S. Steel, Nippon Steel and the White House did not immediately respond to Reuters’ requests for comment.