Biden Administration Delays Enforcement of Nippon Steel's U.S. Steel Bid Block

The Biden administration is postponing the enforcement of an executive order that halted Nippon Steel's $14.9 billion bid for U.S. Steel on national security grounds. The delay allows a court review of the legal challenge against the order, aiming for a renewed assessment of the merger's implications.

The Biden administration has chosen to delay enforcing its executive order, which demands Nippon Steel abandon its $14.9 billion attempt to acquire U.S. Steel. The move follows a legal challenge by the involved parties amidst national security concerns raised by President Joe Biden.

This delay, announced on Saturday, allows the courts more time to review the legal dispute, as the transaction was initially required to be dissolved within 30 days. Treasury Secretary Janet Yellen emphasized the Committee on Foreign Investment in the United States (CFIUS) had conducted a comprehensive review.

In a joint statement, U.S. Steel and Nippon Steel expressed satisfaction with the extension to June 18, 2025. They argued in a lawsuit that Biden's opposition had biased the CFIUS review. The U.S. appeals court is now being urged to reverse Biden's decision, potentially leading to a second chance for the merger.

(With inputs from agencies.)