By Tim Kelly, David Dolan and Aishwarya Jain
TOKYO (Reuters) – Japanese Prime Minister Shigeru Ishiba has sent a letter to President Joe Biden asking him to approve Nippon Steel’s acquisition of U.S. Steel in a bid to improve relations between the countries, according to two sources familiar with the matter. To prevent recent attempts to consolidate.
Biden joined a powerful U.S. labor union in opposing the $15 billion takeover of a U.S. firm by Japan’s top steelmaker and referred it to the Committee on Foreign Investment in the United States (CFIUS), a secret government panel that oversees national Reviews foreign investments for security. danger
The CFIUS review deadline is next month, before President-elect Donald Trump — who has vowed to block the deal — takes office on Jan. 20. CFIUS could potentially approve, or recommend, the deal, along with measures to address national security concerns. The president stops it. It can also enhance the review.
“Japan stands as the largest investor in the US, showing steady growth in its investments. Continuing this upward trend in Japanese investment in the US benefits both our countries, demonstrating to the world the strength of the Japan-US alliance. Doing,” Ishiba said in the letter, according to a copy of the text seen by Reuters. Sources confirmed it was sent to Biden on November 20.
“Under your presidency, this alliance has grown to unprecedented strength. We respectfully ask the US government to approve the planned acquisition by Nippon Steel to build on the achievements you have accumulated over the past four years,” the letter said. Don’t be a shadow.” .
The US Embassy in Japan declined to comment. Ishiba’s office referred questions to the foreign ministry, which said it could not comment on the matter because it involved the management of an individual company.
Nippon Steel declined to comment and U.S. Steel did not immediately respond to a request for comment outside U.S. business hours.
Change in access
Ishiba’s direct approach appears to mark a shift in the Japanese government’s stance on the deal, which had become a political hot potato in a key US swing state in the lead-up to the Nov. 5 presidential election.
Ishiba’s predecessor, Fumio Kishida, had tried to distance his administration from the controversial takeover, casting it as a private business matter even as US political opposition mounted.
When CFIUS alleged in an August 31 letter to the companies that the deal was being blocked, the deal posed a national security risk by endangering the steel supply chain for American industries.
But the review process was ultimately extended until after the election to give the panel more time to understand the deal’s impact on national security and engage with the parties, a person familiar with the matter said.
Before Ishiba took office on October 1, he said any US move to block the deal on national security grounds would be “very destabilizing” given the close ties between the allies.
Ishiba and Biden met for the first time as leaders during an international summit in Peru earlier this month.
Ishiba’s letter said the couple was unable to delve into discussions on economic ties at that meeting due to time constraints, and he wanted to follow up to bring his attention to the deal at a “critical juncture.”
Nippon Steel has made several guarantees and investment pledges to gain approval.
In his letter to Biden, Ishiba reiterated that the deal would benefit both countries.
“Nippon Steel is deeply committed to the safety of US Steel workers and to unlocking a prosperous future with US Steel and its employees,” Ishiba said.
“The proposed acquisition will enable Japanese and U.S. steel companies to combine advanced technologies and increase competitiveness, and contribute to expanding steel production capacity and employment in the United States.”
It was not clear if Biden responded to the letter.
