U.S. Steel Stock Surges Amid Extended Deadline for Nippon Steel Takeover Battle

Key Highlights

• U.S. Steel's stock experiences a notable rise in early trading following the U.S. government's extension of the deadline for Nippon Steel to withdraw its $14.1 billion acquisition proposal.
• The new deadline is set for June 18, extended from the original February timeline, according to a joint announcement by both companies.
• President Biden had previously blocked the acquisition on national security concerns, prompting further legal and regulatory scrutiny.

Shares of U.S. Steel (X) have jumped significantly during premarket sessions after the U.S. government granted Nippon Steel additional time until mid-June to reconsider its planned takeover of the American steel giant.

Both U.S. Steel and Nippon Steel released a joint statement confirming that the Committee on Foreign Investment in the United States (CFIUS) extended the deadline from February to June 18, 2025. This inter-agency committee evaluates foreign investments for potential security risks. The U.S. Treasury Department has been approached for further commentary.

Earlier in January, President Joe Biden blocked the sale citing national security, mandating that the companies must fully and permanently abandon the deal within 30 days unless an extension is granted by CFIUS.

After CFIUS was unable to reach consensus on the security implications of the deal, Biden took direct action to halt the acquisition.

Nippon Steel Granted Extension Until June 18 to Withdraw

In their joint statement, U.S. Steel and Nippon Steel expressed satisfaction with the extension granted by CFIUS, stating, "We are pleased that the deadline to permanently abandon the transaction has been extended to June 18, 2025, as per President Biden’s Executive Order. We remain committed to finalizing the deal, which we believe is in the best interest of the American steel industry and all stakeholders involved."

Both companies have initiated legal action against the U.S. government, challenging Biden’s order in the U.S. Court of Appeals for the District of Columbia Circuit. The lawsuit alleges violations of due process and statutory procedures, citing undue political interference.

U.S. Steel’s shares have climbed approximately 4% in premarket trading and have gained 10% year-to-date through the previous Friday.

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