Biden delays order to block Nippon Steel’s $14.9bn bid for US steel—will the deal survive?

President Biden’s decision to delay the order blocking Nippon Steel’s $14.9bn bid for US Steel has stirred up hope for the companies involved. Initially blocked on January 3rd for national security reasons, the transaction now has a reprieve until June 18. This extension allows time for the courts to evaluate the steelmakers' legal challenge to Biden’s executive order. US Steel and Nippon Steel argue the Committee on Foreign Investment in the United States (CFIUS) failed to offer a fair review, pushing for the decision to be overturned. This could give the companies a chance to revive the deal, potentially reshaping the future of the American steel industry. The Biden administration has raised national security concerns over the proposed acquisition, with Treasury Secretary Janet Yellen confirming that the deal had undergone a "thorough analysis" by CFIUS. But even with extensive scrutiny, the decision to block the transaction has led to significant political and legal pushback. Both Biden and Trump have voiced opposition to the deal, citing the need to protect American industries and jobs, particularly as union votes are at stake. National security aside, this battle over foreign control of a key U.S. industry remains politically charged, and the delay may simply be a pause before the final verdict is rendered. In a bid to keep their deal alive, US Steel and Nippon Steel have taken the matter to court, alleging that Biden’s stance on the acquisition was biased from the start. The companies argue that they were denied a fair review and are now pushing for a fresh assessment that could allow them to move forward with the merger. CFIUS typically handles such matters without direct intervention from the president, but in this case, Biden took the reins after the committee couldn't reach a consensus. As the legal battle continues, the future of the deal hangs in the balance, with the June deadline marking a crucial moment. Japan’s foreign minister, Takeshi Iwaya, has expressed regret over Biden’s decision to block the sale, calling it a potential disruption to the Japan-U.S. alliance. Japan is a major investor in the U.S., and this ongoing controversy has caused unease within the business community. Iwaya emphasized the importance of handling this transaction with care, as the broader diplomatic relationship between the two countries could be at risk. With Japan’s economic interests on the line, the political ramifications of this case go beyond the steel industry and may influence future U.S.-Japan business relations. As June 18 approaches, the steelmakers will continue their legal battle, hoping for a breakthrough that could allow them to complete the merger. But the clock is ticking. The case has garnered significant political attention, and with both national security concerns and international diplomacy at play, it’s unclear whether this acquisition will ever see the light of day. As the legal process unfolds, expect more twists in this high-stakes corporate drama. Will Biden’s decision stand, or will the steel giants get their deal after all?