Nippon-U.S. Steel Deal Offers Foreign Buyers a Vibe Check

International Trade attorney Robert Friedman was quoted in an Axios article recapping the situation surrounding Nippon Steel and U.S. Steel and exploring the implications for potential foreign buyers. The Committee on Foreign Investment in the United States (CFIUS) found foreign ownership of U.S. Steel posed a national security risk, leading then-President Joe Biden to block the acquisition. More recently, the two companies announced a new deal under which Nippon would still acquire U.S. Steel, but would add a $1.4 billion investment, guarantee an American CEO and majority of board members from the United States, plus allow for U.S. government oversight of certain operations. Mr. Friedman commented the latest development demonstrates the possibility of reworking agreements to accommodate CFIUS concerns.

"Even transactions that do present material national security concerns ... can be cleared if the parties are willing to address those concerns through mitigation agreements," he said.

READ: Nippon-U.S. Steel Deal Offers Foreign Buyers a Vibe Check (Subscription required)