Concerns Raised Over Nippon Steel’s Acquisition of US Steel Corp
The head of the US Senate Banking Committee, Sherrod Brown, has urged the Biden administration to investigate the potential national security threats posed by Nippon Steel’s proposed $14.9 billion acquisition of US Steel Corp.
Background
- Brown’s concerns arise from bipartisan opposition in Congress regarding the acquisition.
- Consultancy Horizon Advisory’s report in April raised alleged connections between Nippon Steel and Chinese state-backed steel companies.
Call for Scrutiny
Reuters quoted Brown as saying, “As you examine this deal, I urge you to thoroughly investigate the allegations raised in this report and examine Nippon’s ties to the Chinese government and the danger this merger poses to American national and economic security.”
Nippon Steel’s Response
Nippon Steel has denied the allegations, stating that the report contained inaccuracies and misrepresentations. The company emphasized that its operations in China represent only 5% of its global production capacity.
Concerns and Allegations
- Brown expressed concerns about Nippon Steel’s historical support for China’s steel industry and its current operational presence in the country.
- Horizon’s report highlighted Nippon Steel’s ties to China’s military-civil fusion strategy and global economic influence.
Political Standpoints
President Joe Biden advocated for US Steel to remain domestically owned, while former President Donald Trump vowed to block the acquisition if elected.
Current Status
The White House has not responded to Brown’s call for scrutiny, and Horizon Advisory has not provided further comments.