This development suggests that the Biden administration will not be able to block the deal, with a decision likely to come after the November U.S. presidential election. The move gives the companies more time to address national security concerns surrounding the creation of what would become the world's third-largest steel producer by volume.
The deal, announced in December of 2023, has faced opposition from the United Steelworkers union and become a political issue in the upcoming election. Both President Joe Biden and Vice President Kamala Harris have expressed preferences for U.S. Steel to remain under domestic ownership.
Nippon Steel is expected to withdraw its CFIUS filing by next Monday and resubmit a new application. The company declined to comment on the CFIUS procedures.
