Exclusive-Japan PM Ishiba urges Biden to approve Nippon-US Steel deal, sources say
By Tim Kelly, David Dolan and Aishwarya Jain
The Prime Minister of Japan, Shigeru Ishiba, has sent a letter to President Joe Biden asking him to approve the purchase of Nippon Steel and US Steel, to avoid ruining recent efforts to strengthen relations between these countries, according to two sources with knowledge of the matter.
Biden joined a powerful American labor union in opposing the takeover of a famous American firm for $15 billion by a major Japanese steel company and referred it to the Committee on Foreign Investment in the United States (CFIUS), a secret government panel that reviews foreign investments for national security. accidents.
The CFIUS review deadline is next month, before President-elect Donald Trump – who has vowed to block the deal – takes office on January 20. CFIUS could either approve the deal, possibly with measures to address national security concerns, or recommend that the president block it. It may also extend the update.
“Japan stands as the largest investor in the US, with its investment showing a continuous upward trend. Continuing this rising trend of Japanese investment in the US benefits both our countries, which shows the strength of the Japan-US Alliance in the world, ” Ishiba said in the letter, according to a copy of the document seen by Reuters. Sources confirmed it was sent to Biden on Nov. 20.
“Under your leadership, this Alliance has reached unprecedented strength. We respectfully ask the US government to approve the planned purchase of Nippon Steel so as not to tarnish the assets you have accumulated over the past four years,” the letter said. .
The US embassy in Japan declined to comment. Ishiba’s office referred questions to the foreign ministry, which did not immediately comment. Nippon Steel declined to comment and US Steel did not immediately respond to a request for comment outside US business hours.
CHANGE THE ROUTE
Ishiba’s direct approach appears to reflect a change in the Japanese government’s stance on the deal, which has become a political hot potato in a key US situation ahead of the November 5 presidential election.
Ishiba’s predecessor, Fumio Kishida, wanted to distance his administration from the issue of taking over, framing it as a matter of private business as political opposition grew in the US.
The merger appeared to be blocked when CFIUS alleged in a letter sent to the companies on August 31 that the transaction threatened national security by threatening the supply chain of steel to critical US industries.
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