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U.S. Steel shares are jumping in premarket trading Monday after the U.S. government extended until June from next month a deadline for Nippon Steel to abandon its planned $14.1 billion acquisition of the American steelmaker.
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The deadline has been extended to June 18 from next month, the two companies said in a joint statement.
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President Biden had blocked the sale of the iconic American company to the Japanese firm on national security grounds earlier this month.
U.S. Steel (X) shares are jumping in premarket trading Monday after the U.S. government extended the deadline for Nippon Steel to abandon its planned $14.1 billion acquisition of the American steelmaker to June.
U.S. Steel and Nippon Steel said in a statement that the Committee on Foreign Investment in the United States—an inter-agency committee that assesses financial transactions—extended the deadline, which was originally in February. Investopedia has requested comment from the U.S. Treasury Department.
Earlier this month, President Joe Biden blocked the sale of the iconic American company to the Japanese firm on national security grounds. In its Jan. 3 order, the White House said U.S. Steel and Nippon Steel have to “take all steps necessary to fully and permanently abandon” the deal within 30 days unless CFIUS agreed to extend the timeline.
Biden was tasked with vetting the deal after CFIUS late last month failed to reach a consensus on the deal's security risks.
Nippon Steel Has Until June 18 to Abandon Deal
“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,” a joint statement by U.S. Steel and Nippon Steel said over the weekend. “We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders.”
The two companies had said last week that they are suing the U.S. government over Biden’s blocking of the deal. Their suit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, alleges that Biden's order violated the “constitutional guarantee of due process and statutory procedural requirements,” and exerted “unlawful political influence."
U.S. Steel shares are jumping about 4% in premarket trading Monday and have gained 10% in 2024 through Friday.
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