WASHINGTON – The Biden administration plans to delay enforcement of requirements set out in this month’s executive order for Nippon Steel to abandon its $14.9 billion takeover offer for U.S. Steel, the companies announced Saturday.
President Joe Biden on January 3 blocked Nippon Steel’s proposed takeover of U.S. Steel on national security grounds, and Treasury Secretary Janet Yellen this week said the proposed deal would be approved by the Committee on Foreign Investment, an interagency review body. in the United States, which said it had undergone a “thorough analysis”.
The delay will give the court time to consider a legal challenge to Biden’s order filed by both parties earlier this month. Previously, both parties had 30 days to terminate the deal.
“The companies are pleased that CFIUS has granted an extension to June 18, 2025 of President Biden’s executive order requirement to permanently abandon the transaction,” the companies said in a joint statement.
“We look forward to completing a transaction that will ensure the best possible future for the U.S. steel industry and all stakeholders,” they said.
U.S. Steel and Nippon Steel argued in Monday’s lawsuit that the CFIUS review was biased by Biden’s longstanding opposition to the deal and denied them the right to a fair review. They asked a federal appeals court to overturn Biden’s decision to allow a new review to complete the merger.
The U.S. Treasury Secretary chairs the CFIUS Committee, which reviews foreign acquisitions of U.S. companies and other investment transactions for national security concerns. CFIUS usually decides cases directly or submits recommendations to the president, but in the U.S. Steel/Nippon Steel case, the committee could not agree on whether Biden should approve or veto the bill, leaving the decision to him.
Mr. Biden and his successor, President-elect Donald Trump, had voiced opposition to Japanese companies buying American steelmakers as their candidates sought union votes in November’s election.
CFIUS rarely vetoes agreements involving close G7 allies, including Japan.
