U.S. Steel Stock Jumps as US Extends Deadline for Nippon Steel to Axe Takeover | Global News Avenue

United States Steel Corporation (XNippon Steel’s shares rose in premarket trading on Monday after the U.S. government extended until June a deadline for Nippon Steel Corp to abandon plans to acquire the U.S. steelmaker for $14.1 billion.

U.S. Steel and Nippon Steel said in a statement, Committee on Foreign Investment in the United StatesAn interagency committee that evaluates financial transactions extended a deadline originally scheduled for February. Investment Encyclopedia The U.S. Treasury Department has been requested for comment.

Earlier this month, President Joe Biden blocked The iconic American company was sold to a Japanese company on national security grounds. The White House said in the January 3 order that U.S. Steel and Nippon Steel must “take all necessary steps to fully and permanently abandon” the deal within 30 days unless CFIUS agrees to extend the deadline.

Biden is tasked with reviewing the deal following a review by the Committee on Foreign Investment in the United States (CFIUS) late last month failed to arrive Reach a consensus on the security risks of the transaction.

Nippon Steel has until June 18 to abandon the deal

U.S. Steel and Nippon Steel issued a joint statement over the weekend, saying, “We are pleased that CFIUS has agreed to extend the requirement in President Biden’s executive order that the parties permanently abandon the transaction until June 18, 2025.” “We look forward to completing the transaction, This will ensure the best future for the U.S. steel industry and all stakeholders.”

The two companies said last week that sue The U.S. government has been criticized for blocking the deal by Biden. They filed a lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit, alleging that Biden’s order violated “constitutional guarantees of due process and legal procedural requirements” and exerted “unlawful political influence.”

U.S. Steel shares were up about 4% in premarket trading on Monday and were up 10% in 2024 as of Friday.