By David Lawder
RALEIGH, North Carolina (Multibagger) - U.S. Treasury Secretary Janet Yellen stated on Thursday that the U.S. welcomes foreign direct investment and rigorously reviews deals for national security concerns. However, she declined to comment on reports suggesting that President Joe Biden's administration is preparing to block the U.S. Steel-Nippon Steel merger.
Yellen, speaking to reporters in North Carolina, emphasized that the final decision on national security matters related to foreign acquisitions lies with President Biden.
Recent reports from Multibagger and other news outlets indicated that the Biden administration is ready to halt Nippon Steel's $14.9 billion acquisition of U.S. Steel on national security grounds.
The administration reportedly informed Nippon Steel in a letter over the weekend that the merger could jeopardize national security by negatively impacting the American steel industry, citing sources familiar with the communication.
Many Democrats and Republicans have opposed the deal, with Vice President Kamala Harris expressing her desire for U.S. Steel to remain "American owned and operated." Former President Donald Trump has also vowed to block the merger if re-elected.
When asked about the situation, Yellen stressed that the U.S. is open to foreign direct investment and highlighted the significant amount of investment in North Carolina, particularly in response to the Inflation Reduction Act.
She further mentioned that the U.S. has a thorough review process in place to assess the national security implications of such deals.
"This process is designed to provide guidance to the president, who ultimately makes the decisions in these matters," Yellen stated.
Analysis:
Janet Yellen's comments reveal the complexities of foreign direct investment and the critical role of national security considerations in such transactions. The potential blocking of the U.S. Steel-Nippon Steel merger underscores the government's commitment to safeguarding key industries and interests. This development could impact the future of foreign acquisitions in the U.S. and highlights the importance of balancing economic growth with national security concerns.