Nippon Steel and U.S. Steel Get Extended Deadline for Acquisition Amid Legal Challenges

On Saturday, Nippon Steel and the American steel giant U.S. Steel announced that the deadline to cancel their acquisition plan—halted by an order from President Joe Biden—has been extended from February 2 to June 18. According to the Nikkei on Monday, the delay has been over four months.

The two companies welcomed the extension the Committee on Foreign Investment in the United States (CFIUS) granted. They expressed appreciation for the acknowledgment of the need to finalize the termination of the acquisition by June 18.

CFIUS reportedly approved the deadline extension. When a presidential halt order is issued, the acquiring company must cancel the plan within 30 days. Extending this deadline without CFIUS approval is typically not allowed.

Nippon Steel initially planned to complete the acquisition of U.S. Steel by March 2025, but the merger agreement expires on June 18.

The decision to extend the deadline appears to be tied to legal challenges filed by Nippon Steel and U.S. Steel.

Six days after receiving the halt order, the two companies filed a lawsuit against CFIUS and Biden, arguing that the government had improperly intervened in the acquisition process.

In addition, Nippon Steel and U.S. Steel filed separate lawsuits against the president of the United Steelworkers (USW) and the CEO of rival Cleveland Cliffs, accusing them of illegally obstructing the acquisition.

As part of the legal proceedings, Nippon Steel announced plans to request the U.S. Department of Justice to suspend the halt order while the litigation continues.

Biden’s decision to block the acquisition has faced criticism from the Japanese government and business leaders.

In the United States, Republican lawmakers have also voiced their opposition.

CFIUS had been reviewing Nippon Steel’s acquisition plan for over six months but failed to decide by December 23, 2023, ultimately leaving Biden with the final judgment.