Potential Delay in Decision on U.S. Steel Sale to Nippon Steel #

The decision on whether to block the sale of U.S. Steel to Nippon Steel of Japan is likely to be delayed until after the upcoming election. This development comes as the process has become entangled in presidential politics.

Both major political parties, including high-ranking officials, have expressed opposition to the $15 billion bid, arguing that U.S. Steel should remain under American ownership and operation. However, the prospect of blocking the deal before the election has faced criticism from business groups and legal experts, who worry that political considerations may be influencing a process intended to focus on national security.

The transaction, announced in December, has been under review by a government committee. Officials had previously indicated that the panel was preparing to recommend blocking the deal, citing concerns about the U.S. steel industry, supply chains, and potential international trade issues.

Legal experts have suggested that these arguments might be difficult to justify, given that Japan is a close U.S. ally. They warn that blocking the deal on such grounds could lead to litigation.

The steelworkers union has strongly opposed Nippon’s bid, expressing concerns about pension agreements and promised investments in Pennsylvania facilities.

In a recent development, top executives from both companies met with administration officials involved in the review process in an attempt to salvage the agreement. The companies had reportedly requested to withdraw their applications from the review panel, hoping to gain more time and address government concerns.

Some government departments had expressed reservations about blocking the agreement. In cases where the committee is divided on a deal, the final determination rests with the president.

The potential delay in the decision-making process could extend the review until later in the year, allowing for further consideration of the proposed sale.