President Donald Trump has ordered a fresh review of the proposed $14.9 billion acquisition of US Steel by Japan's Nippon Steel, bringing the deal back into the spotlight.
This comes after the Biden administration blocked the merger in January due to concerns about potential threats to US national security, particularly regarding critical supply chains.
In a memo issued by the White House on Monday, Trump directed the Committee on Foreign Investment in the United States (CFIUS) to reassess the proposed acquisition.
The review will determine if additional actions are necessary to address any national security risks associated with the deal. The committee has 45 days to submit its findings to the president.
According to CNBC, the announcement sent shares of US Steel soaring by more than 16%, closing at $44.49 per share.
Investors viewed the move as a sign that the deal could be closer to receiving approval, which would be a significant shift after Biden's block earlier this year.
Nippon Steel, which has expressed confidence in the merger since its proposal, welcomed the decision. A spokesperson for the company stated that they believed the partnership would strengthen US economic and national security.
"We have been confident from the outset that an objective, fact-based review of our proposed partnership with US Steel will show that it strengthens American economic and national security," the spokesperson said.
1) Trump claims he wants American owned industries in the US. But by this executive order, he’s reopening the sale of US Steel to Nippon Steel or some other foreign company. Could even be the Russians. And why? Because of his childish resentments towards Biden. And also⬇️ pic.twitter.com/kUve0v37Z2
— Jack’s House 🇺🇦Radio Free NAFO (@FluteMagician) April 7, 2025
Read more: Nippon Steel to Face Higher Decarbonization Costs With US Steel Acquisition, Shareholders Warn
Trump Shifts Position on US Steel-Nippon Steel Deal After Biden's Block
US Steel also expressed optimism, with a representative saying that the company looked forward to working closely with the Trump administration to finalize the deal.
The company has been eager to secure the investment from Nippon Steel, which they argue would bring long-term benefits to the US economy.
The deal faced strong opposition from President Biden, who blocked it in January, citing concerns that foreign control of one of the largest steel producers in the US could disrupt vital supply chains.
However, Trump, who had previously opposed the merger, softened his stance in February, signaling that Nippon's potential investment in US Steel, rather than a full acquisition, could be a more favorable path.
The legal battle over the deal has been ongoing since Biden's decision, with US Steel and Nippon Steel filing a lawsuit against CFIUS, Reuters said.
They argue that Biden's public opposition to the deal, made while he was running for re-election, tainted the review process.
The companies claimed that Biden's position was aimed at garnering support from labor unions, particularly in Pennsylvania, where US Steel is headquartered.
In the latest development, both the Trump administration and the companies involved have agreed to pause their litigation until June 5, allowing CFIUS to conduct its new review of the merger. The outcome of this process could potentially resolve the ongoing legal dispute.
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