U.S. Steel (X) shares are rising in premarket trading on January 13 following an announcement that the U.S. gov
ernment has granted an extension for Nippon Steel’s $14.1 billion acquisition of the American steelmaker. The deadline for Nippon Steel to abandon the deal has now been pushed to June 18, 2025.
In a joint statement, U.S. Steel and Nippon Steel confirmed that the Committee on Foreign Investment in the United States (CFIUS) extended the deadline, which was initially set for February. CFIUS, a key U.S. government body responsible for evaluating foreign investments on national security grounds, is reviewing the transaction. The U.S. Treasury Department has yet to provide comment on the extension, according to Investopedia.
The deal hit a roadblock earlier this month when President Joe Biden intervened, blocking the acquisition on national security grounds. In an executive order issued on January 3, Biden directed the two companies l,=]to “take all steps necessary to fully and permanently abandon the transaction” within 30 days, unless CFIUS agreed to extend the timeline.
Biden’s intervention followed a failure by CFIUS to reach a consensus on the deal’s potential national security risks. The inter-agency committee’s decision left the fate of the acquisition in the hands of the President, who was tasked with making the final determination.
In response to the extension, U.S. Steel and Nippon Steel expressed optimism about the future of the deal. “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. “We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders.”
The two companies filed a lawsuit against the U.S. government, challenging Biden’s order in the U.S. Court of Appeals for the District of Columbia Circuit. Their lawsuit claims that the President’s decision violated constitutional due process protections and statutory procedural requirements, and that political influence was improperly exerted in the matter.
U.S. Steel’s stock is up about 4% in premarket trading and has gained 10% in value year-to-date as of January 10.
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