Hey there, steel fans! 🔥 Big news in the world of metal and mergers! The Biden administration just hit the pause button ⏸️ on an order that would've stopped Nippon Steel's massive $14.9 billion bid for U.S. Steel until June 2025. This gives both companies a golden opportunity to keep their merger dreams alive! 💪
In a joint statement on Saturday, the companies expressed their excitement: \"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.\" 🎉
This move buys them precious time to revive what's become a pretty politically charged deal. \"We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders,\" they added. Could this be the start of a steel empire? 🏭✨
But wait, there's more drama! 😲 Back on January 3, President Joe Biden blocked the acquisition on national security grounds. Treasury Secretary Janet Yellen backed this up, saying the Committee on Foreign Investment in the United States (CFIUS) had done a \"thorough analysis\" of the proposed deal. 🕵️♀️
The delay now gives the courts time to check out a legal challenge the steelmakers have brought against Biden's order. It's like a high-stakes legal thriller! 📚⚖️
Interestingly, this isn't just a one-party issue. Both Biden, a Democrat, and the incoming Republican President Donald Trump have opposed the Japanese company snapping up the American steel giant. Talk about bipartisan agreement! 🤝
U.S. Steel and Nippon Steel are fighting back! 🥊 They sued the Biden administration on Monday, claiming that the CFIUS review was biased due to Biden's long-standing opposition to the deal. They're asking a federal appeals court to overturn Biden's decision and give them another shot at closing the merger.
CFIUS, led by the Treasury Secretary, usually decides on these cases or sends recommendations to the president. But in this case, they couldn't reach a consensus, leaving the big decision to Biden himself. Talk about pressure! 😬
On the international front, this has ruffled some feathers in Japan. 🇯🇵 Japanese Foreign Minister Takeshi Iwaya expressed his regret over Biden's decision, emphasizing the importance of the Japan-U.S. alliance. \"Japan is the largest investor in the United States. There is widespread unease within the business community,\" he said during a talk show on NHK. Sounds like there's more at stake than just steel! 🌐
The clock is ticking! ⏰ Will Nippon Steel and U.S. Steel manage to seal the deal? Stay tuned for more updates on this unfolding steel saga! 📰
Reference(s):
Companies keen after U.S. delays nixing Nippon Steel-U.S. Steel merger
cgtn.com
