Biden admin delays enforcement of order blocking Nippon Steel, US Steel deal, companies say

U.S. President Joe Biden attends a briefing on the federal response to the Los Angeles wildfires in the Oval Office of the White House in Washington, U.S., January 10, 2025.

Elizabeth Frantz | Reuters

The Biden administration delayed ordering Nippon Steel to abandon its $14.9 billion bid for US Steel until June, the companies said Saturday, giving them time to revive the deal politically controversial.

President Joe Biden blocked the acquisition on national security grounds on Jan. 3, and Treasury Secretary Janet Yellen said this week that the proposed deal had undergone “thorough analysis” by of the interagency review body, the Committee on Foreign Investment in the United States.

The delay will give courts time to consider a legal challenge filed by steelmakers against Biden's order. The parties previously had 30 days to close their transaction.

“We are pleased that CFIUS has granted an extension until June 18, 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 finalizing this transaction, which ensures the best future for the U.S. steel industry and all of our stakeholders,” they said.

June 18 is the expiration date of the current acquisition contract between Nippon Steel and US Steel, according to a spokesperson for the Japanese company.

The White House, the Treasury Department and a lawyer for the United Steelworkers union, which opposed the deal, could not immediately be reached for comment Saturday evening.

Biden, a Democrat, and his new successor, Republican Donald Trump, have both expressed opposition to the Japanese company's acquisition of the U.S. steelmaker as the candidates courted union votes in the November election that Trump won won.

US Steel and Nippon Steel alleged in their lawsuit Monday that the CFIUS review was compromised 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 another review to get another chance to close the merger.

A drone view shows Gary Works, the largest integrated steel mill in the United States, operated by US Steel, in Gary, Indiana, United States, December 12, 2024.

Vincent Alban | Reuters

The Treasury Secretary chairs the CFIUS committee, which reviews foreign acquisitions of U.S. companies and other investment transactions for national security reasons. CFIUS normally decides cases directly or makes recommendations to the president, but in the US Steel-Nippon Steel case, the panel failed to reach consensus, leaving the decision to Biden.

CFIUS has rarely rejected agreements involving closely allied Group of Seven countries, including Japan.

Japanese Foreign Minister Takeshi Iwaya said Sunday that he told outgoing Secretary of State Antony Blinken in a recent meeting that Biden's decision to block the sale on national security grounds was highly regrettable.

“The broader context of the Japan-U.S. alliance is extremely important, and it is essential to manage this transaction appropriately to avoid disrupting it,” Iwaya said during a talk show on public broadcaster NHK.

“Japan is the largest investor in the United States. There is widespread unease in the business community, and I will continue to urge the United States to allay these concerns,” Iwaya said.

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