On December 26 local time, Japan's Nippon Steel Corporation announced that due to the inability to complete the acquisition of United States Steel by the end of this year, the acquisition time will be postponed to March 2025.

The acquisition has been postponed until March next year.

Since Nippon Steel announced the acquisition of United States Steel for nearly 15 billion dollars last December, this acquisition has faced numerous obstacles.

The Committee on Foreign Investment in the USA (CFIUS) is responsible for carefully reviewing the transaction to determine whether it may impact National Security in the USA. According to the law, the President can only decide whether to block the transaction after receiving CFIUS's final report.

This Monday, CFIUS, unable to reach a consensus on whether the acquisition poses a threat to National Security, handed the final decision-making authority over to President Biden, who has 15 days to make a decision.

It is currently unclear whether Biden will completely veto the agreement. However, earlier this year he stated, "It is crucial for United States Steel to continue operating as a domestically owned and operated steel company."

However, the market expects that Biden may block the Trade before leaving office. The incoming Donald Trump also expressed opposition to this acquisition, stating on Social Media earlier this month, "Through a series of tax incentives and tariffs, we will make the USA steel industry strong again."

However, both United States Steel and Nippon Steel insist that the Trade does not pose a threat to National Security.

In a statement released on the 23rd, United States Steel said: "The Trade between United States Steel and Nippon Steel enhances the National and Economic Security of the USA through investment in manufacturing and innovation, and establishes an alliance in the Steel sector to combat competitive threats from China. We hope President Biden will do the right thing and adhere to the law by approving a transaction that clearly strengthens the National and Economic Security of the USA."

Nippon Steel stated on Thursday: "Nippon Steel hopes the President will take this time to conduct a fair, fact-based evaluation of this acquisition. We still believe that this acquisition will protect and promote the development of United States Steel."

Both parties are eager to finalize the acquisition.

A year ago, when Japan's Nippon Steel announced its acquisition of United States Steel, it appeared to be very sincere.

On one hand, the offered acquisition price was nearly double that of the hostile acquisition price for Cleveland-Cliffs in the USA; on the other hand, Nippon Steel promised to invest billions of dollars in United States Steel's operations in key states. Moreover, it also clearly stated that it would retain the name of United States Steel and its headquarters in Pittsburgh, while ensuring that the core management and majority of the Board of Directors members would be US citizens. This series of measures undoubtedly demonstrates its commitment to the American market.

For United States Steel, this acquisition is also crucial and has the potential to save its increasingly declining Business.

United States Steel has stated that it has been struggling to keep up with cheap foreign steel (mainly from China) for decades, and without the acquisition by Nippon Steel, the company would be forced to close its unionized plants. The billion-dollar investment from Nippon Steel would better support the company's facilities and finances.

Notably, on December 25 local time, Nippon Steel released a letter signed by over twenty municipal officials from the area where the United States Steel plant is located, urging the Biden administration to listen to the voices of steelworkers and all those who are closely related to United States Steel, who unanimously strongly advocate for the approval of this Trade.

However, despite both parties being very willing to reach a Trade, there remains another significant obstacle, which is the strong opposition of the United Steelworkers union.

On Monday, union leader David McCall stated in a declaration: "Since the announcement of the sale, our union has been calling for the government to conduct a thorough review. Now it is up to President Biden to decide the best path forward, and we still believe this means keeping United States Steel under domestic ownership and Operation."

This undoubtedly adds new challenges and variables to the acquisition case.