US extends deadline for Japan’s Nippon Steel to cancel $14.9B acquisition
The deadline for Japan’s Nippon Steel to abandon its $14.9 billion bid to acquire U.S. Steel, after President Joe Biden blocked the deal, has been extended by U.S. authorities to June, the companies announced on Sunday.
Biden cited national security concerns as he put a stop to the $14.9 billion sale of US Steel to the Japanese giant. Accusing the president of “illegal interference,” the companies filed a legal review with the U.S. Court of Appeals.
The administration will now hold off enforcing the order until June 18, Nippon Steel and U.S. Steel said, extending an initial 30-day deadline.
“We are pleased that CFIUS (the Committee on Foreign Investment in the United States) 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 said in a joint statement.
“We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders,” it added.
Nippon Steel block sparks backlash from Japan
While the outgoing president’s decision to block the transaction enjoyed rare bipartisan support at home, it drew sharp criticism from the Japanese government and business community.
Japan’s industry minister labeled it “incomprehensible,” and Prime Minister Shigeru Ishiba called on Washington to “explain clearly” its rationale. Japan and the United States’ top foreign investors.
“It is important to appropriately deal with the issue while not undermining the big picture of the Japan-US alliance,” Foreign Minister Takeshi Iwaya said Sunday.
“I will ask the U.S. side to remove concerns that are spreading in the business community,” he said during a television debate.