Review of Proposed United States Steel Corporation Acquisition

April 7, 2025

Presidential Memoranda

View Original

Action Summary

Acquisition Review: Directs a comprehensive review of U.S. Steel’s acquisition by Nippon Steel Corporation, Nippon Steel North America, Inc., and 2023 Merger Subsidiary, Inc., originally restricted by an earlier presidential order.
Legal Authority: Exercise of powers under Article II of the Constitution and section 721 of the Defense Production Act of 1950 to safeguard national security.
CFIUS Involvement: Instructs the Committee on Foreign Investment in the United States (CFIUS) to conduct a de novo, confidential review, identifying national security risks and allowing the parties to address concerns.
Recommendation Requirement: CFIUS must deliver a recommendation within 45 days, including analysis on whether the parties’ proposals sufficiently mitigate identified risks and detailing each member agency’s position.
General Provisions: Clarifies that the memorandum does not impair statutory authority of other executive branches, does not create enforceable rights, and will be implemented in accordance with applicable law and available appropriations.

Risks & Considerations

The Presidential Memorandum directs a review of the proposed acquisition of U.S. Steel by foreign entities, highlighting national security concerns. This indicates a heightened scrutiny on foreign investments, which could impact international collaborations and partnerships.
Vanderbilt University, particularly its research departments, may need to be cautious about foreign partnerships and funding sources, ensuring compliance with national security regulations.
The memorandum underscores the importance of national security in economic transactions, which could lead to stricter regulations and oversight on foreign investments in critical industries, potentially affecting research funding and collaborations.
There is a potential risk of increased regulatory compliance requirements for universities engaged in research and development activities that involve foreign entities or funding.

Impacted Programs

Vanderbilt’s School of Engineering and Department of Economics may need to consider the implications of increased scrutiny on foreign investments, particularly in research areas related to national security and economic policy.
The Office of Research Administration might need to enhance its due diligence processes for international collaborations and funding sources to ensure compliance with national security regulations.
Vanderbilt’s International Programs could be impacted by changes in foreign investment policies, necessitating adjustments in partnership strategies and engagement with international institutions.

Financial Impact

The increased focus on national security in foreign investments could lead to changes in funding opportunities, particularly for research projects involving international collaborations or foreign funding sources.
Vanderbilt University may need to allocate resources to ensure compliance with new regulations and to manage potential risks associated with foreign partnerships and investments.
There could be opportunities for Vanderbilt to secure funding for research in areas related to national security, economic policy, and international relations, aligning with federal priorities.

Relevance Score: 3 (The memorandum presents moderate risks involving compliance and potential impacts on international collaborations and funding sources.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the outcomes of the CFIUS review and any subsequent actions taken by the administration regarding the U.S. Steel acquisition. Understanding the implications of national security concerns on foreign investments can inform the university’s strategic planning, particularly in areas related to international partnerships and collaborations.
The Vanderbilt Law School could explore research opportunities related to the legal and regulatory aspects of foreign acquisitions and national security. This could enhance the university’s expertise in international trade law and provide valuable insights for policymakers and industry stakeholders.
Vanderbilt’s School of Engineering should consider the potential impacts of national security policies on the steel industry and related sectors. Engaging in research and development projects that address these challenges could position the university as a leader in innovative solutions for industry resilience and security.

Opportunities

The memorandum presents an opportunity for Vanderbilt’s Owen Graduate School of Management to analyze the economic and strategic implications of foreign acquisitions in critical industries. By developing case studies and conducting market analyses, the school can contribute to the broader understanding of global business dynamics and national security considerations.
Vanderbilt can leverage its interdisciplinary strengths to host conferences or workshops on the intersection of national security and international business. This could enhance the university’s reputation as a thought leader in addressing complex global challenges.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with potential changes in national security and foreign investment policies.)

Average Relevance Score: 3.8

Timeline for Implementation

Within 45 days from April 7, 2025.

Relevance Score: 4

Impacted Government Organizations

Department of the Treasury: The memorandum is directly addressed to the Secretary of the Treasury regarding the economic and national security implications of the acquisition.
Department of State: The Secretary of State is listed as a recipient, indicating involvement in international aspects of the review.
Department of Justice: The Attorney General is addressed, implying potential legal and enforcement implications.
Department of Homeland Security: The Secretary of Homeland Security is included, underscoring the national security considerations.
Department of Defense: The Secretary of Defense is a recipient, reflecting the defense-related aspects of the transaction review.
Department of Commerce: The Secretary of Commerce is tasked with monitoring economic implications and trade issues.
Department of Labor: The Secretary of Labor is addressed, indicating potential impacts on employment and industrial policy.
Department of Energy: The Secretary of Energy is included, which may relate to energy security and industrial infrastructure concerns.
United States Trade Representative (USTR): The USTR is listed, highlighting international trade implications of the acquisition.
Office of the Director of National Intelligence (ODNI): The Director of National Intelligence is a recipient, supporting national security and intelligence analysis.
Office of Science and Technology Policy (OSTP): The Director of the Office of Science and Technology Policy is included, which may advise on technological and innovation impacts.
Committee on Foreign Investment in the United States (CFIUS): The memorandum directs CFIUS to conduct a de novo national security review of the acquisition, directly involving this interagency committee.

Relevance Score: 4 (The directive impacts 11 to 15 key federal agencies and interagency committees, indicating broad government involvement.)

Responsible Officials

Committee on Foreign Investment in the United States (CFIUS) – Charged with conducting a de novo, confidential review of the acquisition and submitting its recommendation to the President within 45 days, as directed in Sections 1 and 2.
Cabinet-Level Officials (including the Secretary of the Treasury, Secretary of State, Attorney General, Secretary of Homeland Security, Secretary of Defense, Secretary of Commerce, Secretary of Labor, Secretary of Energy, the United States Trade Representative, the Director of National Intelligence, and the Director of the Office of Science and Technology Policy) – Although addressed in this memorandum, these officials serve primarily as senior advisory recipients rather than as the primary implementers of the directive.

Relevance Score: 5 (Directives involve multiple Cabinet-level officials and high-level national security processes.)