Nippon Steel has delayed the closing date for its $14.9 billion purchase of U.S. Steel until March 2025, amid uncertainty over potential blockage by President Biden on national security grounds.
The Japanese steelmaker is attempting to avoid a confrontation with the White House, opting for a revised timeline rather than pushing forward with its original year-end 2024 deadline. A previous agreement between Nippon and U.S. Steel had been facilitated in part due to lower regulatory hurdles compared to a rival bid from Cleveland-Cliffs.
However, the deal has become politicized given U.S. Steel’s significance in Pennsylvania, a key battleground state. Both Biden and former President Trump have voiced opposition, leading CFIUS to refer the matter to Biden for a final decision.
Nippon and U.S. Steel will continue to press their case with the White House, hoping to avoid a deal blockage. If the acquisition is indeed blocked, a lawsuit may be possible.
Source: https://www.axios.com/2024/12/26/nippon-steel-delays-closing-us-steel