A water tower at the Edgar Thomson Works steel mill in Braddock, Pennsylvania, on September 4, 2024.
Justin Merriman | Bloomberg | Getty Images
The Japanese company Nippon Steel proposed giving the US government veto power over any potential cuts United States steelAmerica's production capacity, as part of its efforts to obtain President Joe Biden's approval to acquire the US steelmaker, a source familiar with the matter said on Tuesday.
Last week, the Committee on Foreign Investment in the United States referred the decision to approve or block the deal to Biden.
Biden, who will leave office on January 20, must make a decision on the deal by January 7. If no action is taken, this will result in automatic approval of the merger.
A White House spokesman said Tuesday: “We have received CFIUS’ assessment and the president will review it.”
The Washington Post previously reported that in its proposal, Nippon Steel pledged a 10-year commitment not to reduce production capacity at US Steel's domestic plants, unless approved by a Treasury Department-led review committee.
US Steel shares rose on the Washington Post report, closing up 9.5% on Tuesday.
US Steel and Nippon Steel did not immediately respond to Reuters' requests for comment.
