Biden’s administration will not enforce a requirement in an executive order issued this month, that Nippon Steel drop its $14.9 billion offer for U.S. Steel. The companies announced on Saturday.

President Joe Biden stopped Nippon Steel from acquiring U.S. Steel on Jan. 3 on the grounds of national security. His Treasury Secretary Janet Yellen stated this week that the deal was “thoroughly analyzed” by the interagency review group, the Committee on Foreign Investment in the United States.

The delay will allow the courts to review the legal challenge that was brought earlier this month by the parties against Biden’s order. The parties had previously 30 days to cancel their transaction.

In a joint press release, the companies stated that they were pleased that CFIUS had granted an extension until June 18, 2025, to Biden’s Executive Order requirement that the parties abandon the transaction permanently.

They said: “We are looking forward to the completion of the transaction which will secure the best future for the American steel industry as well as all our stakeholders.”

U.S. Steel, Nippon Steel, and others claimed in a Monday lawsuit that Biden’s opposition to the merger was a factor in the CFIUS review. This denied them the right to an impartial review. They asked the federal appeals court for a reversal of Biden’s decision, allowing them to have a new review and a second chance at closing the deal.

CFIUS is chaired by the U.S. Treasury Secretary. It screens foreign investments and acquisitions of U.S. firms for national security issues. CFIUS usually makes decisions directly or sends recommendations to presidents, but the panel in the U.S. Steel – Nippon Steel case could not reach consensus as to whether Biden should approve or reject the deal.

Biden, and his successor Donald Trump, both voiced their opposition to the Japanese steelmaker acquiring an American Steelmaker, as they sought union votes during the November elections.

CFIUS rarely rejects deals that involve the Group of Seven closely allied countries, including Japan.