Trump Administration Seeks to Extend Deadlines in U.S. Steel and Nippon Steel Lawsuit

In a recent legal filing, the Trump administration has requested an extension on key deadlines in the ongoing lawsuit involving U.S. Steel and Japan’s Nippon Steel against a U.S. national security panel. The motion, filed by the Department of Justice (DOJ) last week, aims to provide the government additional time to facilitate discussions regarding the contested merger, according to Reuters.

The lawsuit, initiated by the two companies in January, challenges the Committee on Foreign Investment in the United States (CFIUS) after it advised against the proposed merger on national security grounds. Per Reuters, the latest motion seeks a 21-day extension for briefing deadlines and a rescheduling of oral arguments to the week of May 12 instead of the previously set date of April 24.

“The requested extension will allow the government to complete its ongoing discussions with the parties regarding the U.S. Steel and Nippon Steel transaction with the goal of eliminating the need for this Court’s resolution of the litigation on the merits,” the DOJ stated in its filing.

Read more: Nippon Steel Plans to Restart Talks with US Government on $14.9B US Steel Acquisition

The filing is one of the clearest signals yet that former President Donald Trump may be open to allowing the merger to move forward in some form. The deal had previously been blocked under the administration of President Joe Biden. In February, Trump commented that he would not object if Nippon Steel were to take a minority stake in U.S. Steel. Following this remark, a Japanese government spokesperson indicated that Nippon Steel was considering revising its approach to acquiring the American steel giant, according to Reuters.

In an effort to navigate the regulatory hurdles, Nippon Steel attempted to arrange a meeting between its Vice Chairman Takahiro Mori and U.S. Commerce Secretary Howard Lutnick earlier this year. However, no new agreement has been formalized at this time.

U.S. Steel and Nippon Steel argue in their lawsuit that Biden unduly influenced CFIUS’s decision to block the merger, allegedly to garner support from the United Steelworkers (USW) union in Pennsylvania, a crucial swing state. They claim that this interference compromised their right to a fair review.

Source: Reuters