President Trump on Monday directed a powerful US national security panel to take a fresh look at Nippon Steel’s bid for US Steel to help determine if “further action” is appropriate, raising hopes for an elusive greenlight for the deal.
“I direct the Committee on Foreign Investment in the United States…to conduct a review of the acquisition of U.S. Steel by (Nippon Steel) to assist me in determining whether further action in this matter may be appropriate,” the memo reads.
US Steel did not respond to requests for comment. Nippon Steel said it was “pleased” by the news. “We have been confident from the outset that an objective, fact-based review of our proposed partnership with U.S. Steel will show that it strengthens American economic and national security,” it said.
The White House directive sent the share price of US Steel up 12%, as investors took it to mean the Trump administration was considering greenlighting the merger after former President Joe Biden blocked the tie-up in January on national security grounds.
Following the block, the two companies sued CFIUS, which scrutinizes foreign investments for national security risks, alleging that Biden prejudiced the committee’s decision and violated the companies’ right to a fair review.
They claimed that the then-President did so to win the favor of the United Steelworkers (USW) union in the swing state of Pennsylvania, where US Steel is headquartered, to improve his chances of re-election.
Last month, the Trump administration filed a motion to extend two deadlines in US Steel, and Nippon Steel’s lawsuit against a US national security panel to give the government more time to wrap up merger talks with the firms.
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