Investing.com-- A high-level government panel was unable to reach a consensus on Nippon Steel’s (TYO:5401) proposed takeover of U.S. Steel (NYSE:X), the Washington Post reported on Monday, with the decision now being left to President Joe Biden.
The Committee on Foreign Investment in the United States (CFIUS) delivered a long-awaited decision on the nearly $15 billion deal on Monday evening, but was unable to reach a clear consensus, leaving the final decision to Biden, who is widely expected to reject the deal, the Washington Post report said.
The CFIUS ruled that allowing the Japanese firm to buy the U.S. steelmaker could curb domestic steel production, representing a potential national security risk.
Nippon Steel has vowed to make several concessions to ease concerns over security risks. But the deal has been largely opposed by lawmakers and union groups, who fear that it will spark job cuts in U.S. Steel.
Biden has also opposed the deal, as has incoming President Donald Trump.
But with the CFIUS unable to reach a consensus, Biden is now legally required to decide on the deal within 15 days.
U.S. Steel and Nippon Steel have warned they will legally challenge a rejection of the deal.