US Treasury Chief Yellen Offers No Comment on US Steel-Nippon Review, Reports Reuters

By David Lawder

RALEIGH, North Carolina – U.S. Treasury Secretary Janet Yellen emphasized on Thursday that the United States welcomes foreign direct investment and conducts thorough reviews of such deals for national security implications. However, she refrained from commenting on reports suggesting that the Biden administration may move to block the merger between U.S. Steel and Nippon Steel.

During a press briefing in North Carolina, Yellen noted that the final decisions regarding national security concerns related to foreign acquisitions rest with President Biden.

Reports indicated that the administration was preparing to prevent Nippon Steel’s $14.9 billion acquisition of U.S. Steel on the basis of national security. Sources cited that a letter was sent to Nippon Steel over the weekend, highlighting that the merger might threaten the American steel industry.

The potential deal has attracted considerable opposition from members of both political parties. Vice President Kamala Harris, a Democratic presidential candidate, expressed a desire for U.S. Steel to remain "American owned and operated." In contrast, her Republican opponent Donald Trump has vowed to block the merger if he wins the presidency.

In response to questions regarding the situation, Yellen remarked, "The United States has the environment in which we very much welcome foreign direct investment. We’re witnessing significant investment in North Carolina, particularly from companies responding to the Inflation Reduction Act."

She also mentioned that the U.S. employs a "rigorous" review process to assess the national security implications of foreign investment deals, adding, "That’s a process that is intended to advise the president, who makes the ultimate decisions on this."