Nippon Steel, Citing Biden Review, Pushes Back Acquisition Date of US Steel

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The nearly $15 billion deal now hinges on the personal approval of President Joe Biden.

Nippon Steel no longer expects to close its acquisition of U.S. Steel in 2024, the Japanese company said in a Dec. 26 statement.

Nippon Steel said it expects the transaction—originally announced in December 2023—to be completed in the first quarter of 2025. That date was revised from the third or fourth quarter of 2024.

The $14.9 billion acquisition is still awaiting numerous regulatory approvals in the United States, according to the statement.

On Dec. 23, President Joe Biden was asked to make a final determination on the deal within 15 days.

The Epoch Times previously reported the Committee on Foreign Investment in the United States (CFIUS) did not reach a conclusion on how the deal would affect U.S. national security, which prompted the referral to Biden.

Biden can block or approve the deal. If he does not take action during the 15-day window assigned to him by the CFIUS, the White House will consider it approved.

“Nippon Steel hopes that the President will use this time to conduct a fair and fact-based evaluation of the acquisition,” Nippon Steel said in the statement. “We remain confident that the Acquisition will protect and grow U. S. Steel.”

The agreement is also under review by the U.S. Department of Justice’s Antitrust Division.

The United Steelworkers union and politicians have opposed it.

Despite the opposition, U.S. Steel shareholders overwhelmingly voted in April to approve the acquisition.

Both Biden and President-elect Donald Trump have expressed opposition to the deal. Biden has said he wants to see the Pittsburgh-based company domestically owned and operated. Trump has said he will block the agreement once he takes office on Jan. 20, 2025.

U.S. Steel, in a Dec. 23 statement, said the acquisition enhances “U.S. national and economic security through investment in manufacturing and innovation … and forges an alliance in steel to combat the competitive threat from China.”

“It is our hope that President Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security,” the company said.

If the deal fails, Nippon Steel must pay U.S. Steel a $565 million penalty. It could also pursue legal measures against the U.S. government.

Representatives of Nippon Steel and U.S. Steel did not immediately respond to a request for comment from The Epoch Times.

Reuters contributed to this report.