Biden Administration Pauses Nippon Steel's Bid for U.S. Steel Amid Security Concerns

The Biden administration has delayed the deadline for Nippon Steel to abandon its $14.9 billion bid for U.S. Steel. This extension grants time to court challenges and further review, following Biden's earlier block based on national security concerns. The deal remains politically and diplomatically controversial.

The Biden administration has postponed the deadline for Nippon Steel to cease its $14.9 billion acquisition attempt of U.S. Steel. This decision, announced by the companies on Saturday, allows more time for resolving the contentious political and legal issues surrounding the deal.

President Biden had initially halted the acquisition on national security grounds via an executive order on January 3. Treasury Secretary Janet Yellen emphasized the extensive scrutiny the deal received from the Committee on Foreign Investment in the United States (CFIUS). The delay permits legal challenges to Biden's order additional time for review.

Parties involved with the transaction expressed satisfaction with the CFIUS extension until June 18, 2025. Both U.S. Steel and Nippon Steel have challenged the CFIUS review process, suggesting prejudice due to Biden's opposition. Japanese Foreign Minister Takeshi Iwaya stressed the importance of maintaining the Japan-U.S. alliance amidst business apprehensions.

(With inputs from agencies.)