Joe Biden delays order to end Nippon Steel bid for US Steel
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Suspension of executive order until 18 June gives courts time to review steelmakers’ legal challenge. The Biden administration has delayed until June an order for Nippon Steel to abandon its $14.9bn bid for US Steel, potentially giving the companies some time to revive the politically contentious deal.
Joe Biden blocked the acquisition on national security grounds on 3 January and the treasury secretary, Janet Yellen, said this week the proposed deal had received a “thorough analysis” by the Committee on Foreign Investment in the United States (CFIUS).
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 18 June 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.”. 18 June is the expiration date of the current acquisition contract between Nippon Steel and US Steel, according to a spokesperson for the Japanese company.
Biden and his incoming successor, Donald Trump, both voiced opposition to the Japanese company acquiring the American steelmaker as the candidates courted union votes in the November election that Trump won. US Steel and Nippon Steel alleged in their lawsuit on Monday that the CFIUS review was prejudiced by Biden’s longstanding opposition to the deal, denying them the right to a fair review. They asked a federal appeals court to overturn Biden’s decision, which would allow them a fresh review to secure another shot at closing the merger.
