Washington –
The proposed $14.9 billion acquisition of US Steel by Nippon Steel would pose national security risks because it could jeopardize the supply of steel needed for key transportation, construction and agricultural projects, the U.S. government said in a letter to the companies.
The letter also noted a global glut of cheap Chinese steel and said that US Steel, under the banner of Nippon Steel, a Japanese company, would be less likely to impose tariffs on foreign steel importers.
The Committee on Foreign Investment in the US (CFIUS) wrote in a 17-page letter it sent to Nippon Steel and US Steel on Saturday that decisions by the Japanese steelmaker “could result in a reduction in domestic steel production capacity.”
