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Nippon Steel Extends Timeline For $15 Billion U.S. Steel Acquisition

Image: RICHARD A. BROOKS/AFP via Getty Images
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Japan’s Nippon Steel announced on Thursday that it has extended the closing period for its proposed $15 billion acquisition of U.S. Steel, citing confidence in the deal’s potential to protect and grow the American company.

Revised Timeline for the Acquisition

The company now anticipates closing the deal in the first quarter of 2025, a delay from the previously estimated third or fourth quarter of 2024. The delay follows a decision by the U.S. Committee on Foreign Investment (CFIUS) to refer the matter to President Joe Biden for final approval. President Biden has 15 days to decide whether to approve or block the acquisition, a decision that could face scrutiny given bipartisan opposition.

Political and Legal Challenges

Both President Biden and his incoming successor, Donald Trump, have expressed opposition to the transaction, potentially complicating its approval.

In response to the referral, Nippon Steel released a statement on Thursday:

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

Additionally, the company noted that the U.S. Department of Justice’s antitrust division is also reviewing the acquisition. Nippon Steel did not specify when the antitrust review process might conclude.

Strategic Rationale and Implications

The acquisition, if approved, would mark one of the most significant cross-border transactions in the global steel industry, enhancing Nippon Steel’s presence in the U.S. market.

However, the deal’s success hinges on navigating political, regulatory, and legal hurdles, including:

  • National security concerns tied to foreign ownership of critical American industries.
  • Antitrust considerations regarding market concentration in the steel sector.

As Nippon Steel works to address regulatory and political challenges, the company remains optimistic about completing the acquisition. With the U.S. administration’s decision and the Department of Justice review still pending, the outcome of this high-profile transaction will likely have far-reaching implications for the global steel industry and U.S.-Japan economic relations.