Biden Admin Delays Enforcement of Order Blocking Nippon Steel, US Steel Deal

FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo
FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo
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Biden Admin Delays Enforcement of Order Blocking Nippon Steel, US Steel Deal

FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo
FILE PHOTO: The logos of Nippon Steel Corp. are displayed at the company headquarters in Tokyo, Japan March 18, 2019. REUTERS/Yuka Obayashi/File Photo

The Biden administration will hold off enforcing a requirement laid out in an executive order this month that Nippon Steel abandon its $14.9 billion bid for US Steel, the companies said on Saturday.

US President Joe Biden blocked Nippon Steel's planned acquisition of US Steel on national security grounds on Jan. 3, and his Treasury Secretary Janet Yellen said this week that the proposed deal had received a "thorough analysis" by interagency review body, the Committee on Foreign Investment in the United States.

The delay will give the courts time to review a legal challenge brought by the parties earlier this month against Biden's order. The parties previously had 30 days to unwind their transaction, Reuters reported.
"We are pleased that CFIUS has granted an extension to June 18, 2025 of the requirement in President Biden's Executive Order that the parties permanently abandon the transaction," the companies said in a joint statement.
"We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders," they said.
US Steel and Nippon Steel alleged in a lawsuit on Monday that the CFIUS review was prejudiced by Biden's longstanding opposition to the deal, denying them of a right to a fair review. They asked a federal appeals court to overturn Biden's decision to allow them a fresh review to secure another shot at closing the merger.
The US Treasury secretary chairs the CFIUS panel, which screens foreign acquisitions of US companies and other investment deals for national security concerns. CFIUS normally decides directly on cases or submits recommendations to the president, but in the US Steel-Nippon Steel case, the panel failed to reach consensus on whether Biden should to approve or reject it, leaving the decision to him.
Both Biden and his successor, Republican Donald Trump, had voiced opposition to the Japanese company acquiring the American steelmaker as the candidates courted union votes in the November election won by Trump.
CFIUS has rarely rejected deals involving the Group of Seven closely allied countries, which include Japan.



Saudi Arabia Allocates SAR10 Billion to Activate Standard Incentives Program for Industrial Sector

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
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Saudi Arabia Allocates SAR10 Billion to Activate Standard Incentives Program for Industrial Sector

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. (SPA)

Saudi Arabia announced on Saturday the allocation of SAR10 billion to activate the Standard Incentives Program for the industrial sector, following approval by the government in December. The initiative seeks to enable industrial investments, spur their growth, and achieve sustainable industrial development in the Kingdom, while elevating the global competitiveness of Saudi industry.

The Ministry of Industry and Mineral Resources and the Ministry of Investment outlined key details of this newly launched incentives package during a ceremony attended by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz; Minister of Investment Khalid Al-Falih; Minister of State and Member of the Council of Ministers Dr. Hamad bin Mohammed Al Al-Sheikh; Minister of Industry and Mineral Resources Bandar Alkhorayef; Minister of Economy and Planning Faisal Alibrahim; and several other ministers, senior officials, and leaders from major local and global companies.

The Standard Incentives Program offers coverage of up to 35% of the initial project investment, capped at SAR50 million for each qualifying project. The support is divided evenly across the project lifecycle, granting 50% during the construction phase and 50% during the production phase.

The program will be introduced in successive phases, with the first targeting investments in transformative chemical industries, automotive manufacturing and parts, and machinery and equipment. Further industry segments are slated for announcement in subsequent phases throughout 2025.

AlKhorayef emphasized that the Standard Incentives Program is the first of its kind in the region, and that it aims to promote the manufacture of products not currently produced in the Kingdom.

The program opens new horizons for high-value industrial investments, accelerates their pace, and ensures their long-term sustainability. It enables both Saudi and international investors to harness the Kingdom’s unique advantages, including its strategic geographic location that links three continents, its open market, and low customs tariffs, he added.

He underscored that the Standard Incentives Program focuses on achieving localization and local content targets as core drivers of sustainable development. By empowering industries that enhance the use of national resources and bolster reliance on Saudi talent, the program contributes to reducing imports and strengthening the balance of payments.

“These incentives were developed through an exceptional effort of governmental collaboration across diverse agencies, particularly the Local Content and Balance of Payments Committee, chaired by Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, which played a pivotal role in formulating policies and directing initiatives that support industrial investments and national manpower,” AlKhorayef remarked.

Al-Falih highlighted that the Standard Incentives Program is a significant step toward realizing the ambitions of Vision 2030 and the National Investment Strategy, both of which aim to attract and expand industrial investments while boosting the competitiveness of Saudi industry.

These incentives will accelerate the emergence of new industrial facilities across the entire value chain, thereby offering investors stronger, faster, and more cost-competitive local supply chains, he explained.

Emphasizing the close partnership with the Ministry of Industry and Mineral Resources, he said he was optimistic over building a robust and diversified industrial base that serves domestic and regional markets.

The incentives, in their current form, are expected to energize the industrial movement in the Kingdom, continued the minister. Projections indicate the program could generate an estimated SAR23 billion annually in GDP from the targeted projects, extending its impact beyond the creation of a solid industrial foundation.

During the official launch ceremony, a range of investment opportunities in the targeted sectors was introduced to domestic and international firms. The event featured a ministerial panel discussion and workshops that examined how these incentives can shape the future of Saudi industry, enhance its global leadership, and make the Kingdom’s industrial sector more attractive to both local and foreign investors. The discussions also underscored how the program contributes to the key objectives of the National Industrial Strategy and the National Investment Strategy.

The Standard Incentives Program aligns with the Vision 2030 goals for the industrial sector by focusing on promising fields such as transformative chemicals, aviation, automotive, food, medical devices, pharmaceuticals, and machinery and equipment. These efforts underscore Saudi Arabia’s commitment to achieving integrated and sustainable economic diversification.