Biden admin delays order blocking Nippon Steel, US Steel deal
The delay could potentially give the two companies time to argue their case in court and salvage the deal
The Biden administration delayed until June an order for Nippon Steel to abandon its US$14.9 billion bid for US Steel, the two companies said on Saturday, giving them some time to revive the politically contentious deal.
US President Joe Biden blocked the acquisition on national security grounds on January 3, and Treasury Secretary Janet Yellen said this week the proposed deal had received a “thorough analysis” by the inter-agency review body, the Committee on Foreign Investment (CFIUS) in the United States.
The delay will give the courts time to review a legal challenge the steelmakers brought against Biden’s order. The parties previously had 30 days to unwind their transaction.
“We are pleased that CFIUS has granted an extension to June 18, 2025 of the requirement in President Biden’s executive order that the parties permanently abandon the transaction,” the companies said in a statement.
“We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders,” they said.
June 18 is the expiration date of the current acquisition contract between Nippon Steel and US Steel, according to a spokesperson for the Japanese company.
