U.S. President Joe Biden attends a briefing regarding the federal government’s response to wildfires across Los Angeles in the Oval Office of the White House on January 10, 2025 in Washington, U.S.
Elizabeth Franz | Reuters
The Biden administration has postponed its order abandoning Nippon Steel’s $14.9 billion takeover bid until June. US Steelthe companies announced on Saturday, giving them time to revive the politically contentious deal.
President Joe Biden blocked the deal on January 3 on national security grounds, and Treasury Secretary Janet Yellen said this week that the proposed deal had been given a “thorough review” by the Committee on Foreign Investment in the United States, an interagency review body. He said that he had undergone a comprehensive analysis.
The delay will give the court time to consider legal challenges brought by steel makers against Biden’s order. Previously, both parties had 30 days to terminate the deal.
“We are pleased that CFIUS has granted President Biden’s Executive Order an extension to June 18, 2025 of the requirement that both parties permanently abandon the transaction,” the companies said in a statement.
“We look forward to the completion of a transaction that will ensure the best possible future for the U.S. steel industry and all stakeholders,” the companies said.
June 18 is the expiration date of the current acquisition agreement between Nippon Steel and U.S. Steel, according to a spokesperson for the Japanese company.
The White House, Treasury Department and lawyers for the United Steelworkers union, which opposes the deal, did not immediately respond to requests for comment late Saturday.
Biden, a Democrat, and his successor, Donald Trump, a Republican, have threatened to buy a U.S. steelmaker by a Japanese company as their candidates sought to rally union votes in the November election, which Trump won. expressed opposition.
U.S. Steel and Nippon Steel argued in Monday’s lawsuit that Biden’s longstanding opposition to the deal biased the CFIUS review 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.
Video taken by drone on December 12, 2024 of Gary Works, the largest integrated steel mill in the United States operated by US Steel, located in Gary, Indiana.
Vincent Alban | Reuters
The Secretary of the Treasury 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 reach an agreement and left the decision to Biden.
CFIUS rarely vetoes agreements involving close G7 allies, including Japan.
Japanese Foreign Minister Takeshi Iwaya said Sunday that he told outgoing Secretary of State Antony Blinken in a recent meeting that he deeply regretted Biden’s decision to block the sale on national security grounds.
“The broader context of the Japan-U.S. alliance is extremely important, and it is essential that this deal is handled appropriately so as not to disrupt it,” Iwaya said on public broadcaster NHK’s talk show.
“Japan is the largest investor in the United States. There is widespread anxiety in the business community, and we will continue to urge the United States to allay these concerns,” Iwaya said.
