Trump orders fresh review of Nippon Steel’s bid for US Steel
White House directive sent share price of US Steel up over 13 per cent as move raised hopes of approval for deal blocked by Biden in January
US President Donald 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 green light for the deal.
“I direct the Committee on Foreign Investment in the United States … to conduct a review of the acquisition of US Steel by [Nippon Steel] to assist me in determining whether further action in this matter may be appropriate,” the memo reads.
The Trump administration, US Steel and Nippon Steel asked an appeal court later on Monday to pause their litigation until June 5 while the Committee on Foreign Investment in the United States reviews the tie-up anew.
Following the block, the two companies sued CFIUS, which scrutinises 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 Biden did so to win the favour of the United Steelworkers union in the swing state of Pennsylvania, where US Steel is headquartered, to improve his chances of re-election.