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Biden administration postpones enforcement of order halting Nippon Steel and US Steel deal


The Biden administration has delayed enforcing an executive order requiring Nippon Steel to abandon its $14.9 billion bid for U.S. Steel, citing national security concerns. This decision follows a legal challenge brought by the companies against Biden’s order, giving the courts time to review the case. The Committee on Foreign Investment in the United States (CFIUS) previously conducted a thorough analysis of the proposed deal and extended the requirement for the parties to abandon the transaction until June 18, 2025.

U.S. Steel and Nippon Steel filed a lawsuit claiming that Biden’s opposition to the deal influenced the CFIUS review, denying them a fair assessment. They are seeking to overturn Biden’s decision and secure another review to proceed with the merger. The CFIUS panel, chaired by the U.S. Treasury secretary, typically reviews foreign acquisitions of U.S. companies for national security concerns. In this case, the panel could not reach a consensus, requiring Biden to make the final decision.

Biden and his predecessor, Donald Trump, had expressed opposition to Nippon Steel acquiring a U.S. steelmaker during the election campaign, as they courted union votes. Despite rarely rejecting deals involving closely allied countries like Japan, CFIUS is now facing scrutiny over its handling of this case. The companies remain hopeful of completing the transaction to secure the future of the American steel industry and all stakeholders.

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www.nbcnews.com

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