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WASHINGTON (Reuters) – The Biden administration will stop implementing a requirement set out in an executive order this month that Nippon Steel drop its $14.9 billion bid for US Steel, the companies said on Saturday.
US President Joe Biden blocked Nippon Steel’s plan to buy US Steel on national security grounds on January 3, and his Treasury Secretary Janet Yellen said this week that the proposed deal it received a “perfect review” by the independent review group, the Committee on Foreign Affairs. Investment in the United States.
The delay will give the courts time to evaluate a legal challenge brought by the parties earlier this month against Biden’s order. The parties previously had 30 days to release their business.
“We are pleased that CFIUS has granted an extension to June 18, 2025 of the President Biden Administration’s requirement that the parties cease the process indefinitely,” the companies said in a joint statement.
“We look forward to completing the transaction, which secures the best possible future for the American steel industry and all stakeholders,” they said.
US Steel and Nippon Steel argued in a lawsuit on Monday that the CFIUS review was biased by Biden’s long-standing opposition to the deal, denying them the right to a fair review. They asked a federal appeals court to overturn Biden’s decision to allow them a retrial to get another shot at closing the deal.
The US Treasury Secretary is the chairman of the CFIUS panel, which reviews foreign acquisitions of US companies and other investment deals for national security concerns. CFIUS usually directly decides on cases or makes recommendations to the president, but in the US Steel-Nippon Steel case, the panel failed to reach a consensus on whether Biden should accept or reject it. he left the decision to him.
Both Biden and his successor, Republican Donald Trump, voiced opposition to a Japanese company acquiring an American steelmaker when voters cast ballots in November’s presidential election, which Trump won.
CFIUS rarely vetoes deals involving the Group of Seven member states, which include Japan.
