Biden cited national security concerns in halting US Steel's $14.9 billion sale to the Japanese giant.
Accusing the president of "unlawful interference," the companies filed an appeal with the U.S. Court of Appeals.
The administration will now postpone implementation of the order until June 18, Nippon Steel and US Steel said, extending the original 30-day deadline.
"We are pleased that CFIUS (the Committee on Foreign Investment in the United States) has granted an extension until 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 the completion of a transaction that secures the best future for the U.S. steel industry and for all of our stakeholders," it added.
Although the outgoing president's decision to block the deal enjoyed rare bipartisan support at home, it drew sharp criticism from the Japanese government and business community.
Japan's industry minister described it as "incomprehensible" and Prime Minister Ishiba Shigeru called on Washington to "clearly explain" its motives.
Japan and the United States are the biggest foreign investors.
"It is important that the issue be resolved appropriately while not undermining the overall picture of the Japan-U.S. alliance," Foreign Minister Takeshi Iwaiya said on January 12.
"I will ask the U.S. side to remove the concerns that have been circulating in business circles," he said during a televised debate. | BGNES
