Nippon Steel Reportedly Gets Extension To Provide Plans for US Steel Takeover

Shares of U.S. Steel (X) advanced Wednesday amid a report that Nippon Steel has been given more time by Biden administration officials to provide information about its $14.9 billion takeover of the iconic American company.

Bloomberg reported that a federal security panel is allowing Nippon to refile its plans for the purchase, effectively restarting the clock and extending the Japanese steel company’s opportunity to get approval from regulators. The news site noted the delay would push the review of the acquisition until after the November elections.

Biden, Harris, Trump All Say US Steel Should Remained American-Owned

The purchase has come under fire from politicians on both sides of the aisle, with President Biden and the two people vying for his job, Vice President Kamala Harris and former president Donald Trump, arguing that U.S. Steel should remain American-owned. 

Company Chief Executive Officer (CEO) David Burritt said in an interview earlier this month that U.S. Steel needs the promised injection of nearly $3 billion promised by Nippon Steel when the deal goes into effect. He explained that without that infusion of cash, the company would have to close plants and likely move its headquarters out of Pittsburgh, where it’s been since 1901. 

U.S. Steel shares rose 3.7% to $37.56 about 45 minutes after the opening bell Wednesday. Still, they have lost more than 20% of their value this year on concerns the deal might be blocked.