The Washington Post reported that Japan’s Nippon Steel has offered a 10-year guarantee not to cut production at any US Steel plants without federal approval, in an attempt to complete its planned purchase of the US steelmaker.
The newspaper said that Nippon Steel has proposed giving the US government veto power over any potential capacity cuts by US Steel.
The Committee on Foreign Investment in the United States has been examining the security risks of the Japanese company’s acquisition. After the committee failed to reach a consensus, it chose to let President Joe Biden decide whether to allow the deal.
The committee expressed concern that the planned purchase could lead to a decline in steel production in the United States.
But the newspaper said a source close to the matter said that Nippon Steel may need to invest billions of dollars to maintain its production capacity in the United States, in addition to its existing commitments.