U.S. Extends Deadline for Nippon Steel To Scrap Takeover Bid To June 18

US authorities have extended the deadline for Japan's Nippon Steel Corp. and United States Steel Corp. to abandon their merger plan to June 18, the companies announced.

The extension of the initial February 2 deadline followed a request from Nippon Steel. I Photo: Daniel Foster Flickr

This extension comes as they continue their legal battle to proceed with the deal, Kyodo News reported.

US President Joe Biden issued an order on January 3 to block Nippon Steel's $14.1 billion takeover of US Steel, citing national security concerns. The order required the companies to take all necessary steps to "fully and permanently" abandon the deal within 30 days.

However, the order included a provision allowing the Committee on Foreign Investment in the United States (CFIUS)—a panel of US federal agencies tasked with evaluating foreign transactions—to extend the deadline.

The extension of the initial February 2 deadline followed a request from Nippon Steel.

"We are pleased that CFIUS has granted an extension to June 18," US Steel stated. "We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders."