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Concerns Arise Over US Steel’s Sale to Nippon Steel Amid Security Review Concerns Arise Over US Steel’s Sale to Nippon Steel Amid Security Review

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US Steel (NYSE:X) experienced a swift 1.2% decline in response to reports indicating that a US national security review of its planned sale to Nippon Steel (OTCPK:NISTF) may extend for a year or possibly longer.

Interference in the Process

According to a Bloomberg report released recently, a US national security review is not expected to conclude until late this year, and there is even a possibility of it stretching into 2025. This assessment, attributed to sources familiar with the matter, suggests that a review by the Committee on Foreign Investment in the US (CFIUS) is in its early stages.

Conflicting Timelines

The length of the CFIUS review appears to conflict with assertions from US Steel (X) and Nippon executives, who have expressed their anticipation of finalizing the $14 billion deal by the second or third quarter of this year.

Adjustments in the Administration

The latest update follows a report from The Wall Street Journal announcing that The Biden administration is gearing up to scrutinize the US Steel sale. The report highlighted the significant involvement of lawyers representing the companies who have regularly consulted with U.S. Treasury Department officials from the commencement of the deal’s announcement last month.

Assurance Amid Challenges

Despite opposition from the United Steelworkers union and certain U.S. lawmakers, Nippon Steel President Eiji Hashimoto expressed confidence on Friday, affirming the company’s determination to successfully complete its acquisition of US Steel (X).

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