After President Joe Biden halted the deal, US officials have given Japan’s Nippon Steel more time to back out of its acquisition of its American rival, the companies announced on Sunday, January 12.
Biden halted the US$14.9 billion sale of US Steel to the Japanese behemoth, citing national security concerns. With a legal review, the firms accused the president of “illegal interference” before the US Court of Appeals.
Nippon Steel and US Steel announced that the administration will now postpone the order’s enforcement until June 18, extending the original 30-day deadline. We are happy that the requirement in President Biden’s Executive Order that the parties permanently abandon the transaction has been extended to June 18, 2025 by CFIUS (the Committee on Foreign Investment in the United States,” the companies stated in a joint statement.
To ensure the best future for the American steel sector and all of our stakeholders, we are eager to complete the deal,” it continued. The decision to deny the acquisition was sharply criticized by the Japanese government and business community, despite receiving rare bipartisan backing at home.
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