Biden administration delays enforcement of order blocking Nippon Steel, US Steel transaction

The Biden administration has delayed the order for Nippon Steel Corp. to abandon its $14.9 billion bid for U.S. Steel until June, according to a joint statement from the companies cited by multiple news outlets.

The administration will hold off enforcing the order until June 18, extending an initial 30-day deadline.

The president announced his decision Jan. 3, citing national security as a leading factor and stressing the importance of maintaining a strong domestically owned and operated steel industry, adding that steel production and the workers who produce it are the nation’s backbone.

In response to Biden’s decision, Tokyo-based Nippon Steel, its wholly owned subsidiary Nippon Steel North America Inc. (NSNA) and Pittsburgh-based United States Steel Corp. filed two lawsuits, claiming “ongoing illegal interference” with the transaction that involves Nippon purchasing U.S. Steel for $14.9 billion. Nippon first announced its intention to buy U.S. Steel in late December 2023.

U.S. Steel, Nippon Steel, and NSNA filed a petition in the U.S. Court of Appeals for the District of Columbia Circuit Jan. 6 challenging what they describe as the violation by Biden and the Committee on Foreign Investment in the United States (CFIUS) of the petitioners’ constitutional due process and statutory rights; CFIUS’ failure to review the transaction on national security grounds; and Biden’s subsequent order blocking it for purely political reasons which are irrelevant to, and are to the detriment of, U.S. national security.

The petitioners are asking the court to set aside what they say is “the unlawful” CFIUS review process and Biden’s accompanying order and to instruct CFIUS to conduct a new review of the transaction that is consistent with the petitioners’ due process rights and its statutory obligations.

The delay in enforcement gives the courts time to review the legal challenge the companies brought against Biden’s order. 

National news outlets cite a joint statement from Nippon Steel and U.S. Steel that reads: “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.

"We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders,” the statement continues.

CNBC, citing a spokesperson for Nippon, reports that June 18 is the expiration date of the current acquisition contract between Nippon Steel and U.S. Steel.