Dec 26, 2024 - World

Nippon Steel delays closing date for U.S. Steel acquisition

Dan Primack

Illustration of the Japanese flag made out of steel — Illustration: Sarah Grillo/Axios

Nippon Steel on Thursday delayed the closing date for its proposed $14.9 billion purchase of U.S. Steel, as it waits to learn if President Biden will block the deal on national security grounds.

Why it matters: The Japanese steelmaker is trying to play nice with the White House, rather than trying to force a quick decision by sticking with its original closing date of year-end 2024.

Its revised closing date is now the end of March 2025.

Catch up quick: Pittsburgh-based U.S. Steel agreed to be acquired by Nippon last December, believing the regulatory hurdles would be lower than if it went with a rival bid from Ohio's Cleveland-Cliffs.

CFIUS, the U.S. government body that investigates foreign acquisitions, had never before blocked a Japanese acquirer.
But this deal quickly turned political, given U.S. Steel's importance to the battleground state of Pennsylvania, and both Biden and Donald Trump came out in opposition.
CFIUS proved unable to reach consensus, and instead sent a referral to Biden that basically allows him to make the final call.

Look ahead: Nippon and U.S. Steel both keep pressing their case with the White House, hoping that Biden won't follow through on his threat.

If the deal is indeed blocked, a lawsuit is possible.

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Nippon Steel delays closing date for U.S. Steel acquisition

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