The Biden administration has decided to delay enforcing its executive order that blocked Nippon Steel’s $14.9 billion bid for U.S. Steel, granting the parties more time to challenge the decision in court. Initially announced on January 3, President Biden cited national security concerns as the reason for halting the acquisition, sparking immediate legal action from both companies. Now, with the courts reviewing the lawsuit, the administration has extended the deadline until June 18, 2025, giving the companies more time to potentially undo the deal.
The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign acquisitions of U.S. companies for national security implications, conducted a thorough review but could not reach a consensus. Treasury Secretary Janet Yellen confirmed that the decision had undergone a detailed analysis, yet it led to President Biden’s block.
Both U.S. Steel and Nippon Steel filed a lawsuit, alleging that the review was unfairly biased due to the President’s longstanding opposition to the deal. They argue this deprived them of a fair review process and are seeking a federal appeals court to overturn Biden’s order, hoping for a second chance to secure the merger.
This delay highlights the ongoing tension between national security concerns and global business acquisitions, particularly when it involves major players from allied nations. Historically, CFIUS has rarely blocked deals involving Group of Seven (G7) countries, of which Japan is a part. However, with both Biden and his successor, President-elect Donald Trump, opposing the merger to secure union votes, the stakes remain high. As the legal battle unfolds, the future of this deal hangs in the balance, with significant implications for the American steel industry and international business relations.
