Regarding the Proposed Acquisition of United States Steel Corporation by Nippon Steel Corporation
1. Purpose
The order addresses national security concerns regarding the acquisition of United States Steel Corporation by Nippon Steel Corporation and mandates compliance measures to mitigate risks.
2. Key Actions And Directives
- Prohibit Transaction: The transaction is prohibited unless a national security agreement is executed between purchasers and U.S. Steel.
- Authorize CFIUS Actions: CFIUS is authorized to implement necessary measures, including monitoring and enforcement, to protect national security.
- Preserve Presidential Authority: The President reserves the right to issue further orders to safeguard national security.
3. Important Points
- Credible National Security Threat: The President affirmed evidence suggesting that the purchasers might pose a threat to national security.
- Federal Register Communication: The order was mandated to be published in the Federal Register for public awareness.
- Defense Production Act Basis: The President is acting under section 721 of the Defense Production Act of 1950, as amended.
- CFIUS Review Background: CFIUS conducted an extensive review, leading to its referral of the transaction to the President.
- Previous Presidential Order: Then-President Biden prohibited the transaction on January 3, 2025, indicating heightened concerns prior to the June order.
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