Nippon Steel Delays U.S. Steel Acquisition Amid Biden Review

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Mergers And Acquisitions,Foreign Investment,Steel Industry

Nippon Steel has pushed back the closing date for its purchase of U.S. Steel as President Biden weighs whether to intervene and block the deal. Concerns about foreign ownership have led to scrutiny of the proposed acquisition.

Nippon Steel extended the closing date for its acquisition of U.S. Steel as President Joe Biden decides whether to block the deal. Investors hope stocks will close the holiday shortened week strong. While trading has been sparse, the three major U.S. averages have all climbed this week. The has jumped 2.3%. It follows stronger performance for the tech-heavy index throughout the month. The Nasdaq has gained 4.2% so far in December, versus a 0.1% increase for the S&P and 3.5% decline for the Dow.

The Japanese company changed the date to close the acquisition to the first quarter of 2025, from a previous target of the third or fourth quarter of this year. A committee that oversees foreign acquisitions in the U.S. referred the decision on whether to block the deal to President Joe Biden on Monday, giving him 15 days to decide. Biden, the United Steelworkers union and some politicians have raised concerns about foreign ownership of the company

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Nippon Steel-US Steel Merger Referred to Biden for DecisionThe potential merger between Nippon Steel and US Steel has been sent to President Joe Biden for a final decision after a deadlock in the CFIUS review.
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