Biden administration delays deadline for U.S. Steel, Nippon Steel to kill merger
The Biden administration has given U.S. Steel and Japan’s Nippon Steel an extra six months to ditch their merger, keeping the deal alive as litigation unfolds over whether a national security panel’s review of it was tainted by political considerations.
Under the watch of the Committee on Foreign Investment in the United States, or CFIUS, the parties originally had 30 days to unwind the transaction following a Jan. 3 order from President Joe Biden.
“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 said in a joint statement. “We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders.”
The delay gives the companies time to argue a lawsuit filed Monday against the administration asking a federal appeals court to void Biden’s decision and force a new national security review.
An inconclusive report from the Treasury-led committee paved the way for Biden to axe the deal. Treasury Secretary Janet Yellen has defended the committee’s analysis as “thorough.”
An accompanying lawsuit accuses United Steelworkers International President David McCall and Cleveland-Cliffs CEO Lourenco Goncalves of conspiring to tank the deal for anti-competitive reasons, and seeks an injunction to stop further alleged tampering.
McCall and Goncalves have rejected the allegations and vowed to mount a vigorous defense.
Despite these glimmers of hope, Nippon’s nearly $15 billion takeover of the Pittsburgh-based manufacturer is likely on life support, legal and industry experts told TribLive. The courts may be hesitant to intervene, and, even if they do, the decision could fall to incoming President Donald Trump, who also opposes the deal.
After taking a stance last January, Trump has shown few signs of flip-flopping. The companies have courted him, nonetheless, perhaps banking on his fondness for undoing the work of his presidential predecessors.
“The president can step in now and undo the wrongful, shameful, corrupt actions of Biden,” U.S. Steel CEO David Burritt said. “We understand what his current views are, but he’s a smart guy. He has the opportunity to have fresh eyes and do what’s right, and I believe strongly he will.”
Related:
• Trump might still have sway in U.S. Steel-Nippon deal
• Podcast: Biden blocks the sale of U.S. Steel, lawsuits follow
• Nippon, U.S. Steel file 2 suits after Biden administration blocks $15 billion deal
• 'Steel is all around us:' Pittsburghers reflect on region's industrial arc in wake of blocked U.S. Steel deal
• Devastation, relief on spectrum of emotions for stakeholders in U.S. Steel sale after Biden's block
• U.S. Steel, Nippon say Biden's decision to block sale was 'political'
• With U.S. Steel deal axed, economic experts question future of Mon Valley steelmaking
• What they're saying about it: U.S. Steel-Nippon deal blocked
Jack Troy is a TribLive reporter covering the Freeport Area and Kiski Area school districts and their communities. He also reports on Penn Hills municipal affairs. A Pittsburgh native, he joined the Trib in January 2024 after graduating from the University of Pittsburgh. He can be reached at jtroy@triblive.com.
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