Japan’s leading steel producer, Nippon Steel Corp., has pledged not to reduce output capacity at United States Steel Corp's mills for a decade, according to Kyodo News, The move comes as part of its latest proposal to appease US authorities as Nippon Steel aims to secure approval for its acquisition of the struggling steelmaker ahead of the inauguration of Donald Trump less than three weeks from now.

As such, the move is directed at the outgoing administration of President Joe Biden. According to the Washington Post, the Japanese steel giant submitted its proposal to the White House on December 30 following a lack of consensus among US federal agencies on whether to greenlight the $14.1bn acquisition. The impasse has now left the final decision in the hands of President Biden.

Last week, the two steelmakers revealed that the Committee on Foreign Investment in the United States (CFIUS) had informed them it could not reach an agreement on the transaction.

Chaired by Treasury Secretary Janet Yellen, CFIUS is the US body tasked with assessing whether foreign investments in US firms pose risks to national security.

Both President Biden, who is due to leave office on 20 January, and President-elect Donald Trump have publicly opposed the deal, which was first announced in December.

The Post reported that Nippon Steel's proposal includes a commitment not to cut production capacity at facilities in Pennsylvania, Alabama, Arkansas, California, Indiana, and Texas without prior approval from CFIUS.

Under CFIUS rules, President Biden is now required to make a final decision by around January 6 or 7. It is now thought he may conditionally approve the takeover if Nippon Steel agrees to additional guarantees, such as safeguarding American jobs, according to one anonymous official cited by the newspaper.

As discussions in Washington continue, the report further noted that officials are, for the first time, considering deferring the decision to the incoming Trump administration.

This is, according to sources in Japan, something Nippon Steel are keen to avoid if possible, but for now the decision on whether or not this becomes a reality is with Joe Biden.