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Nippon Steel and the U.S. are asking for an eight-day pause in their legal dispute to address concerns about the merger
(Reuters) – On Thursday, Nippon Steel and the Trump administration petitioned a U.S. appeals court to prolong their litigation pause by eight days. This extension aims to provide additional time for negotiations, enabling the Japanese company to acquire U.S. Steel for $14.9 billion.
The court is expected to grant the extension, as it did on April 7. At that time, President Trump ordered a second national security review of the merger. The initial pause was set to conclude on June 5.
“A continued abeyance is warranted given … the ongoing efforts to reach a resolution that would fully resolve petitioners’ claims,” the companies and the government said in their filing.
The call for a brief pause suggests that both companies and the government believe a deal is imminent. This is welcome news for investors, who have anxiously followed the rocky path of negotiations since the deal was announced in December 2023.
Last year, both former President Joe Biden and Trump emphasized the importance of U.S. ownership of U.S. Steel, aiming to appeal to voters ahead of the 2024 presidential election. The company is headquartered in Pennsylvania, a key battleground state.
In January, Biden blocked the deal citing national security concerns, leading to lawsuits from the companies, which claimed the review process was biased. The White House denied these allegations.
The steel companies saw an opportunity under the Trump administration, which took office on January 20. In April, they sought a pause in litigation to initiate a new 45-day national security review of the merger.
However, Trump’s public statements added confusion. He ranged from welcoming a simple investment from Nippon Steel to suggesting a minority stake, leaving the future of the merger uncertain.
On Friday, Trump praised an “agreement” between Nippon Steel and U.S. Steel at a political rally, but stopped short of formally approving the merger, which remains a sensitive diplomatic issue.
