Biden boss delays implementation of order blocking Nippon Steel, US Steel deal Reuters
WASHINGTON (Reuters) – The Biden administration will stop enforcing a requirement set out in an executive order this month that Nippon Steel abandon its $14.9 billion bid to buy US Steel, the companies said on Saturday.
US President Joe Biden blocked Nippon Steel’s plan to acquire US Steel on national security grounds on January 3, and his Treasury Secretary Janet Yellen said this week that the proposed deal had received a “thorough review” by the interagency review body, the Foreign Affairs Committee. Investing in the United States.
The delay will give the courts time to review a legal challenge the groups launched earlier this month against Biden’s order. Previously parties had 30 days to complete their transactions.
“We are pleased that CFIUS has granted a June 18, 2025 extension of the requirement in President Biden’s Executive Order that the parties permanently cease operations,” the companies said in a joint statement.
“We look forward to completing the project, which protects the bright future of the American steel industry and all of our stakeholders,” they said.
US Steel and Nippon Steel alleged in Monday’s lawsuit that the CFIUS review was biased by Biden’s long-standing opposition to the deal, denying them the right to a proper review. They asked the appeals court to overturn Biden’s decision to allow them to reconsider so they could get another shot at closing the merger.
The US Treasury Secretary is the chairman of the CFIUS panel, which examines foreign purchases of US companies and other investment deals for national security issues. CFIUS usually decides directly on cases or submits recommendations to the president, but in the US Steel-Nippon Steel case, the panel failed to reach an agreement on whether Biden should approve or reject, leaving the decision up to him.
Both Biden and his successor, Donald Trump, a Republican, have expressed opposition to a Japanese company acquiring an American steelmaker as candidates vote for unions in the November election that Trump won.
CFIUS rarely rejects deals involving the closely related Group of Seven countries, which include Japan.
