Lawmakers Raise Concerns About Biden Admin’s Probe of US Steel Acquisition

Four members of the House Financial Services Committee asked the Treasury Department last week for an update on the proposed acquisition of U.S. Steel by Japan-based Nippon Steel, saying they’re concerned the Biden administration’s review of the deal may have been improperly influenced by politics.

In a letter to Treasury Secretary Janet Yellen, the lawmakers said their concerns have been fueled by reports that President Joe Biden plans to block the deal and by Vice President Kamala Harris’ recent comment at a rally that U.S. Steel should "remain American-owned and American-operated" (see 2409060040).

“As you know, CFIUS is legally mandated to base its actions solely on national security considerations and not on political interests,” the letter says. “However, Vice President Harris’s remarks, combined with reports that the Biden administration may be poised to intervene in the transaction, give the strong appearance of political interference. The possibility that these actions are being taken to benefit a particular candidate, given the upcoming presidential election, is deeply troubling.”

In addition to requesting an “immediate” briefing on the CFIUS investigation, the lawmakers said they want to know whether the White House has directed a specific outcome of the process, what steps are being taken to ensure the review isn’t affected by political considerations, why it was determined that any national security concerns raised by the acquisition couldn’t be mitigated, and whether the administration violated confidentiality rules by discussing the review with third parties.

The letter is signed by Reps. Dan Meuser, R-Pa.; Andy Barr, R-Ky.; Bill Huizenga, R-Mich.; and John Rose, R-Tenn.

Treasury, the White House and the Harris presidential campaign didn’t immediately respond to requests for comment.

Nippon Steel and U.S. Steel announced the $14.9 billion deal in December, saying that combining their technologies and manufacturing capabilities would allow them to better serve their customers (see 2312200056). With the transaction, U.S. Steel would receive “$2.7 billion of transformative investments" from Nippon Steel, allowing it to keep its facilities operating “for decades to come," U.S. Steel said in an e-mail Sept. 9. "There is no scenario where U. S. Steel would be able to make these investments absent Nippon Steel."