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Delay gives steelmakers time to try to revive deal

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Biden blocked $14.9 bln deal on national security grounds

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President-elect Trump has also expressed opposition

WASHINGTON, Jan 11 (Reuters) - The Biden administration

delayed until June an order for Nippon Steel ( NISTF ) to abandon

its $14.9 billion bid for U.S. Steel, the companies said

on Saturday, giving them some time to revive the politically

contentious deal.

President Joe Biden blocked the acquisition on national

security grounds on Jan. 3, and Treasury Secretary Janet Yellen

said this week the proposed deal had received a "thorough

analysis" by the interagency review body, the Committee on

Foreign Investment in the United States.

The delay will give the courts time to review a legal

challenge the steelmakers brought against Biden's order. The

parties previously had 30 days to unwind their transaction.

"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," the

companies said in a statement.

"We look forward to completing the transaction, which

secures the best future for the American steel industry and all

our stakeholders," they said.

June 18 is the expiration date of the current acquisition

contract between Nippon Steel ( NISTF ) and U.S. Steel, according to a

spokesperson for the Japanese company.

The White House, Treasury Department and a lawyer for the

United Steelworkers union, which has opposed the deal, could not

immediately be reached for comment late on Saturday.

Biden, a Democrat, and his incoming successor, Republican

Donald Trump, both voiced opposition to the Japanese company

acquiring the American steelmaker as the candidates courted

union votes in the November election that Trump won.

U.S. Steel and Nippon Steel ( NISTF ) alleged in their lawsuit on

Monday that the CFIUS review was prejudiced by Biden's

longstanding opposition to the deal, denying them the right to a

fair review. They asked a federal appeals court to overturn

Biden's decision to allow them a fresh review to secure another

shot at closing the merger.

The Treasury secretary chairs the CFIUS panel, which screens

foreign acquisitions of U.S. companies and other investment

deals for national security concerns. CFIUS normally decides

directly on cases or submits recommendations to the president,

but in the U.S. Steel-Nippon Steel ( NISTF ) case, the panel failed to

reach consensus, leaving the decision to Biden.

CFIUS has rarely rejected deals involving the Group of Seven

closely allied countries, which include Japan.

Japanese Foreign Minister Takeshi Iwaya said on Sunday he

had told outgoing Secretary of State Antony Blinken during a

recent meeting that Biden's decision to block the sale on

national security grounds is highly regrettable.

"The broader context of the Japan-U.S. alliance is extremely

important, and it is essential to handle this transaction

appropriately to avoid disrupting it," Iwaya told a talk show on

public broadcaster NHK.

"Japan is the largest investor in the United States. There

is widespread unease within the business community, and I will

continue urging the U.S. to alleviate these concerns," Iwaya

said.