• The Biden administration has extended the deadline for Nippon Steel's $14.9 billion bid for US Steel until June 18, 2025.
• This extension provides time for legal challenges against Biden's prior block of the acquisition on national security grounds.
• The Committee on Foreign Investment in the United States (CFIUS) conducted a thorough analysis before the recent delay announcement.
• Both companies expressed optimism about securing a deal that benefits the American steel industry.
• Concerns were raised by Japanese officials regarding the implications for US-Japan relations.

The Biden administration has delayed an order requiring Nippon Steel to abandon its $14.9 billion bid for US Steel, extending the deadline until June 18, 2025. This move potentially grants the companies a chance to revive this politically sensitive deal that was initially blocked by President Joe Biden on January 3 due to national security concerns. Treasury Secretary Janet Yellen confirmed that the deal underwent a “thorough analysis” by the Committee on Foreign Investment in the United States (CFIUS), which has jurisdiction over foreign acquisitions in the US.

The delay allows judiciary proceedings to consider a legal challenge brought forth by the two steelmakers against Biden's decision, which previously gave them only 30 days to unwind their transaction. In a statement, both companies expressed their satisfaction with the extension granted by CFIUS, indicating that they are hopeful about completing the merger, which they argue is crucial for the future of the American steel sector.

Japanese Foreign Minister Takeshi Iwaya has voiced concerns regarding the deal's blockage, emphasizing its significance within the context of US-Japan relations, and lamented that Biden's move was “highly regrettable.” The acquisition has drawn bipartisan scrutiny, particularly as both Biden and his successor, Donald Trump, have expressed opposition while courting union votes during their political campaigns.

Amidst allegations from US Steel and Nippon Steel about a biased CFIUS review process, they have requested that a federal appeals court overturn Biden's decision, seeking a fresh evaluation of the merger. These developments raise questions about future foreign investments in the US, especially from allied nations like Japan. In the context of the G7 countries, it is rare for CFIUS to dismiss such significant transactions.

For further details, please refer to the original articles by The Guardian and SCMP.