National security panel split on risks of U.S. Steel deal — again

The Committee on Foreign Investment in the United States (CFIUS) remains divided on whether U.S. Steel’s proposed sale to Tokyo-based Nippon Steel presents a national security risk, but most panel members think there’s a path forward for the deal.

Reuters broke the news Thursday, citing an anonymous White House official.

“CFIUS agencies were not unanimous in the recommendation,” the White House official said. “But the majority believe any risks can likely be addressed through mitigation.”

The panel, which vets mergers and acquisitions involving foreign companies for national security risks, delivered its recommendation to President Donald Trump on Wednesday, Reuters reported.

Under ordinary circumstances, Trump would have to make a decision within 15 days of receiving the report. National security and industry sources told TribLive, however, the June 5 deadline in this case is flexible.

CFIUS reports typically are not made public.

The committee also lacked consensus during its first review, under the Biden administration. Former President Joe Biden went on to block the $14.9 billion deal in January on national security grounds.

Trump ordered the committee last month to reexamine the sale, even as he remained publicly against U.S. Steel coming under the control of a foreign company.

A divided panel gives Trump ample fodder to justify whatever decision he makes. But for a president who claims to be reviving domestic manufacturing, denying the deal could backfire.

Nippon initially promise to invest $1.4 billion in U.S. Steel facilities on top of the sale price. The Japanese steelmaker has since raised that pledge to $14 billion, including $4 billion for a new electric arc furnace mini mill and $2.4 billion to upgrade facilities in Pennsylvania.

The Mon Valley Works would see at least a $1 billion infusion if the deal goes through.

United Steelworkers leadership, representing more than 3,000 workers in the Mon Valley, has stood firm in its opposition. The union is a reliable Democratic booster, and had Biden’s ear at various points while he weighed the risks of the deal.