The Biden administration has extended the deadline for Nippon Steel to abandon its $14.9 billion bid for U.S. Steel until June 18, 2025, according to a joint statement from the companies on Saturday.
\"We are pleased that CFIUS has granted an extension to June 18, 2025, of the requirement in President Biden's executive order that the parties permanently abandon the transaction,\" the companies stated.
This move provides the companies additional time to revive the politically contentious merger. They expressed optimism, stating, \"We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders.\"
Originally, President Joe Biden had blocked the acquisition on national security grounds on January 3. Treasury Secretary Janet Yellen mentioned this week that the Committee on Foreign Investment in the United States (CFIUS) had conducted a \"thorough analysis\" of the proposed deal.
The extension allows time for courts to review a legal challenge filed by U.S. Steel and Nippon Steel against Biden's order, alleging that the CFIUS review was prejudiced by the president's longstanding opposition to the deal.
Japanese Foreign Minister Takeshi Iwaya expressed regret, emphasizing the importance of the Japan-U.S. alliance and urging the U.S. to alleviate business community concerns.
Reference(s):
Companies keen after U.S. delays nixing Nippon Steel-U.S. Steel merger
cgtn.com
