Overview

• Japan's Nippon Steel has agreed to purchase US Steel for $14.1 billion, a deal that has sparked bipartisan opposition in the US due to national security concerns.
• Senators JD Vance, Josh Hawley, Marco Rubio, Sherrod Brown, Joe Manchin, and John Fetterman, along with the United Steelworkers union, have voiced their opposition to the deal, citing the importance of domestic steel production to US national security.
• Nippon Steel's acquisition of US Steel is seen as a strategic move to reinforce its position as a global titan amid a weak domestic outlook, despite the high premium it's paying.
• The deal is expected to close in the second or third quarter of 2024, subject to regulatory approvals, including from the Committee on Foreign Investment in the United States (CFIUS).
• Despite the opposition, some experts believe it is unlikely that the deal will be blocked, given Japan's status as a close US ally.