The Biden administration has granted a delay in enforcing its order blocking Nippon Steel Corp.’s $14.9 billion acquisition of U.S. Steel. The order, initially set for a 30-day deadline, has been extended until June 18, 2025. This delay allows time for a legal review after Nippon Steel and U.S. Steel filed lawsuits challenging the decision.

Legal Challenges to Biden’s National Security Concerns

On January 3, 2025, President Biden announced the decision to block the acquisition, citing national security concerns and the importance of maintaining a strong, domestically owned steel industry. The steel industry plays a critical role in national defense and infrastructure, which the administration emphasized as a core reason for its intervention.

In response, Nippon Steel, its subsidiary Nippon Steel North America (NSNA), and U.S. Steel filed lawsuits against the decision, claiming “illegal interference” with the transaction. They argue that the Committee on Foreign Investment in the United States (CFIUS) did not review the deal on national security grounds and that the president’s intervention was politically motivated and detrimental to U.S. interests. The companies are seeking to overturn the CFIUS review process and obtain a new review in line with their constitutional rights.

The Impact of the Delay

The legal challenge and delay in the enforcement of Biden’s order mean that Nippon Steel and U.S. Steel have more time to argue their case. The companies remain optimistic about completing the acquisition, asserting that it would benefit the American steel industry and its workers. The current contract for the acquisition is set to expire on June 18, 2025, aligning with the newly granted deadline for enforcement.

Nippon Steel and U.S. Steel’s joint statement indicates that they are committed to securing the best future for the American steel sector and its stakeholders, despite the ongoing legal hurdles.