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Nippon Steel offers US government veto power in quote for US Steel approval, source states

Japan's Nippon Steel has proposed giving the U.S. government veto power over any potential cuts to U.S. Steel's production capacity, as part of its efforts to protect President Joe Biden's approval for getting the American steelmaker, a source familiar with the matter stated on Tuesday.

Last week, the Committee on Foreign Financial Investment in the United States (CFIUS) referred the decision to approve or block the offer to Biden.

Biden, who will leave workplace on Jan. 20, need to choose the deal by Jan. 7. If he takes no action, it would result in the merger's automatic approval.

We received the CFIUS assessment and the President will review it, a White Home representative stated on Tuesday.

The Washington Post reported earlier that in its proposal, Nippon Steel promised a 10-year commitment not to cut production capability at U.S. Steel's domestic mills, unless authorized by a. Treasury-led review panel.

U.S. Steel and Nippon Steel did not right away respond to. Reuters' ask for remark.

(source: Reuters)