The decision to review the proposed acquisition of United States Steel Corporation by Nippon Steel will be postponed until after the U.S. presidential election.

According to a source familiar with the matter, the Committee on Foreign Investment in the United States (CFIUS) has allowed the two companies to resubmit their application for approval of the $14.9 billion acquisition of United States Steel Corporation (X.US) by Nippon Steel. This means that the decision on the politically sensitive transaction will be postponed until after the U.S. presidential election on November 5. This move has brought a glimmer of hope to the two companies. CFIUS had previously stated on August 31 that the deal threatened the steel supply chain of a critical U.S. industry and posed a threat to national security. Therefore, it appeared that the proposal to merge the two companies would be rejected. It is worth mentioning that Nippon Steel, in a 100-page response to CFIUS, stated that the company would invest billions of dollars in United States Steel Corporation, "undoubtedly" enabling it to "maintain and potentially increase the domestic steel production capacity in the United States." Nippon Steel also reiterated that it would not transfer any production capacity or jobs of United States Steel Corporation overseas and would not interfere with any trade decisions of United States Steel Corporation, including decisions to take trade measures against unfair trade practices in accordance with U.S. law. The source familiar with the matter stated on Tuesday that CFIUS needed more time to understand the impact of the transaction on national security and to engage with all parties involved. CFIUS has set a new 90-day deadline for the two companies to resubmit their application for the proposed merger and make a decision. Another source familiar with the matter indicated that the review is expected to take close to the full 90 days. In December last year, the global fourth largest steelmaker, Nippon Steel, announced its intention to acquire United States Steel Corporation for $14.9 billion in an all-cash deal, at a price of $55 per share. Nippon Steel, with strong financial resources, hoped to expand its footprint in the United States through the acquisition, strengthen its position as a global giant, and use overseas expansion to address weak domestic demand. This acquisition is also expected to increase the company's global crude steel production capacity to 100 million tons. However, since the announcement, the acquisition plan has faced repeated setbacks and strong opposition domestically in the United States. Previously, the acquisition plan was met with unanimous opposition from U.S. President Biden, Vice President and Democratic presidential candidate Harris, and Republican presidential candidate Trump. They all opposed foreign ownership of United States Steel Corporation, as the steel produced by the company is an important commodity used in building ships, trains, and infrastructure. This transaction has become a political "hot potato," with both parties vying for union votes. Harris expressed at a rally in swing state Pennsylvania, where United States Steel Corporation's headquarters are located, that she hoped United States Steel Corporation would continue to be "owned and operated by Americans," echoing Biden's view. Trump promised to block the acquisition agreement if elected. Nick Klein, a lawyer at DLA Piper, stated: "Extending the timeline alleviates some pressure for both parties. Importantly, it postpones the review decision until after the U.S. election in November." David Boling, a former U.S. trade official and current analyst at Chang Chun Eurasia Group, stated that delaying the review decision until after the U.S. election would reduce the political heat of the deal, but does not guarantee approval. Boling said, "Regardless of CFIUS's review decision, Nippon Steel must reach an agreement with the United Steelworkers union. Without doing so, this deal will be difficult to complete." However, the United Steelworkers union, which strongly opposes the deal, reiterated on Tuesday that "Nippon Steel's acquisition poses risks to national security and does not change the identified critical supply chain issues." The United Steelworkers union had previously stated that the nearly $15 billion acquisition was a "doomed transaction" and pledged to oppose any foreign ownership of the company.