Feb 22 (Reuters) -The Biden
administration is examining Nippon Steel's 5401.T China
connection, in relation to the Japanese company's planned acquisition of
American rival U.S. Steel X.N, Bloomberg News reported on Thursday, citing people familiar
with the matter.
The administration
sees protecting the U.S. industry as its priority and is worried about Nippon
Steel's exposure to China, the report said.
It is not clear whether the China
assets of Nippon Steel will be an explicit part of the Committee on Foreign
Investment in the United States (CFIUS) review, the report said.
The world's
fourth-largest steelmaker's $14.9 billion deal to buy U.S. Steel has drawn
criticism from some of the Democratic and Republican lawmakers and the powerful
United Steelworkers union.
The White House has
also promised "serious scrutiny" of the deal given the company's role
in U.S. steel production, which the government regards as critical to national
security.
When contacted by Reuters,
Nippon Steel said its operations in China are very limited – representing less
than 5% of the company's global production capacity.
"Our goal is to enhance U.S.
Steel's competitiveness in the global steel market and address the industry's
overproduction and overcapacity issues – largely driven from China," it
added.
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