Nippon Steel Delays US Steel Acquisition Date, Referencing Biden Review
The approximately $15 billion agreement now relies on the personal endorsement of President Joe Biden.
Nippon Steel has revised its timeline, stating that it no longer anticipates finalizing its acquisition of U.S. Steel in 2024, as noted in a statement released on December 26.
The $14.9 billion transaction is still pending multiple regulatory approvals in the United States, as mentioned in the statement.
On December 23, President Joe Biden was asked to render a final decision on the agreement within 15 days.
Biden has the authority to either approve or block the agreement. If he does not act within the designated 15-day period assigned by CFIUS, the transaction will be deemed approved by the White House.
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“Nippon Steel anticipates that the President will take this time to perform a thorough and factual assessment of the acquisition,” the company stated. “We remain optimistic that the acquisition will enhance and secure the future of U.S. Steel.”
This agreement is also being evaluated by the Antitrust Division of the U.S. Department of Justice.
Opposition is coming from both the United Steelworkers union and various politicians.
In spite of this opposition, U.S. Steel shareholders overwhelmingly endorsed the acquisition in a vote held in April.
Both President Biden and President-elect Donald Trump have voiced their disapproval of the deal. Biden aims to ensure that the Pittsburgh-based corporation remains domestically owned and operated, while Trump has stated he will block the agreement when he assumes office on January 20, 2025.
“We hope that President Biden will act appropriately and comply with the law by approving a transaction that evidently bolsters U.S. national and economic security,” the company added.
Should the deal fall through, Nippon Steel will be liable to pay U.S. Steel a penalty of $565 million. It may also consider legal action against the U.S. government.
Representatives from Nippon Steel and U.S. Steel were not available for immediate comment when approached by The Epoch Times.
Reuters contributed to this report.
