U.S. President Donald Trump on Monday ordered a panel of federal agencies to conduct another review of Nippon Steel Corp’s blocked $14.1 billion bid to take over United States Steel Corp.
In a presidential memorandum released by the White House, Trump said the purpose of the review is to assist him “in determining whether further action in this matter may be appropriate” and directed the Committee on Foreign Investment in the United States to submit a recommendation to him within 45 days.
The memorandum said the recommendation needs to describe whether any measures proposed by the Japanese and U.S. steelmakers are “sufficient to mitigate any national security risks” previously identified by the committee as constituted under Trump’s predecessor Joe Biden.
The document addressed to the committee’s current members, including Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio, said the review will be carried out anew.
The development, which could break the stalemate over the buyout plan, came after Nippon Steel Vice Chairman Takahiro Mori held talks with Lutnick last week, during which he promised to increase the Japanese company’s investment in U.S. Steel facilities.
Following Trump’s announcement of the review, U.S. Steel shares soared in New York at a time when global stock markets have seen steep declines or extreme volatility amid concerns that Trump’s sweeping tariffs announced last week might upend the world economy.
U.S. Steel hailed Trump’s decision, saying it was “pivotal as we work to deliver on new and historic levels of investment in American steelmaking.”
“We look forward to continuing to work closely with President Trump and his administration to finalize this significant and important investment, which will preserve existing jobs, create new jobs, enhance national security and secure a bright future for American manufacturing,” it said in a statement.
Nippon Steel said it “appreciates” the decision to reexamine their plan and hopes the review process will be completed as soon as possible so the company can start investment projects as planned.
In early January, Biden issued an order to block the sale of U.S. Steel to the Japanese firm, citing national security grounds, following a recommendation by the panel, also known as CFIUS.
Nippon Steel and U.S. Steel, which announced their merger plan in December 2023, filed a lawsuit after Biden’s decision, arguing that the CFIUS screening and recommendation were influenced by the Democratic president.
In mid-March, a U.S. Steel filing with the Securities and Exchange Commission showed that the Justice Department had asked a Washington court to provide more time for the government to complete its ongoing discussions with the two steelmakers.
It said the two companies had consented to the department’s motion aimed at eliminating the need for the court to resolve the litigation, with oral arguments that were due to begin April 24 pushed back to the week of May 12.
In the months leading up to the 2024 presidential election, Biden had aligned with the leadership of the powerful United Steelworkers union to voice opposition to the sale of the iconic but struggling U.S. producer, which is headquartered in Pennsylvania, a key battleground state in the race to the White House.
The Republican Trump, who won the Nov. 5 election, was also against the sale. He has since said that Nippon Steel acquiring a minority stake in U.S. Steel would not cause any issues, but a foreign company owning it would be “psychologically not good.”
During a joint press conference with Japanese Prime Minister Shigeru Ishiba in February following their meeting in Washington, Trump said Nippon Steel would “invest heavily” in U.S. Steel, instead of seeking to fully own it.
But Nippon Steel, the world’s fourth-largest producer, and U.S. Steel have not given up on their plan to merge.
Before Biden blocked Nippon Steel’s buyout attempt, which would have created the world’s third-largest steelmaker by volume, U.S. Steel and its shareholders were supportive of the idea as a way to become more competitive globally.
At the joint press conference, Trump said he would “mediate” a deal between the U.S. and Japanese companies.
“I didn’t want it purchased, but investment I love,” he said at the time, and later started claiming that his administration’s new 25 tariffs on all steel and aluminum imports would revive American companies like U.S. Steel.
© KYODO
© Japan Today
