Japan’s leading business federation, Keidanren, said Friday that the Japanese business community is closely following the United States’ review of Nippon Steel’s $15 billion bid to buy U.S. Steel. The organization said it expects the U.S. review process to be conducted with the highest level of honesty and fairness in accordance with legal standards.The process has become a focal point for Japanese businesses in light of growing bipartisan political resistance in the U.S. as the presidential election approaches. The outcome of this deal is of great importance to Japanese companies because the U.S. is not only Tokyo’s main ally but also a leading destination for Japanese foreign investment.
The White House is nearing a decision, with President Joe Biden widely expected to reject the Japanese steel giant’s purchase, citing national security risks, according to reports Wednesday. The potential move by the Biden administration has raised concerns in Japanese business circles, as reflected in a statement released Thursday by the Japan-U.S. Business Council, a group representing major Japanese companies in Washington, D.C., that expressed serious concerns about news of the deal being blocked.
The ongoing scrutiny of this high-profile merger highlights the delicate balance between international business interests and national security concerns as global companies anxiously await a final decision from the U.S. administration
