Partner David Plotinsky spoke with Law360 about the potential for a new deal between Nippon Steel and US Steel following the White House’s decision to block the initially proposed $14.9 billion merger in January, which led the companies to sue, seeking a reversal of that decision and a fresh review by the Committee on Foreign Investment in the United States (CFIUS).
David noted that if Nippon does renegotiate and restructure the deal, the company could end up with a new CFIUS review that might address some of the alleged defects in the previous review currently being challenged in court.
“A restructured deal is a different animal, and so CFIUS would have jurisdiction and would have to look at it separate and apart from any further White House involvement,” David said.
However, David explained that a new deal could see continued White House influence if Nippon seeks investor rights that grant it a “dominant minority” stake in US Steel, which would, under CFIUS’s broad interpretation of “control,” give the committee jurisdiction over the deal.