President Donald Trump on Monday ordered a new national security review of Nippon Steel's $14.9 billion acquisition of U.S. Steel, a move that revived hopes for the controversial foreign takeover and sent U.S. Steel shares surging more than 13%.
In a directive issued by the White House, Trump tasked the Committee on Foreign Investment in the United States (CFIUS) with reassessing the deal, which had been previously blocked by President Joe Biden on national security grounds.
"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," Trump said in the memorandum.
CFIUS now has 45 days to make a recommendation on whether measures proposed by Nippon and U.S. Steel are sufficient to mitigate any potential risks to national security. The development signals a possible shift in the administration's stance following earlier opposition to the transaction.
The proposed acquisition, first announced in December 2023, would mark one of the most significant foreign takeovers of a U.S. industrial company in recent years. U.S. Steel is one of the country's oldest and most iconic steelmakers, with deep ties to Pennsylvania, a key electoral state.
Biden blocked the merger in January, citing the strategic importance of maintaining domestic control over critical supply chains and the potential national security implications of transferring ownership to a foreign firm. At the time, U.S. Steel and Nippon Steel filed suit against CFIUS, accusing the Biden administration of political interference and denying them a fair review.
The companies alleged that Biden's decision was intended to curry favor with the United Steelworkers union ahead of the 2024 election. Both firms have pushed for a renewed review, saying their proposals ensure continued U.S. jobs and investment.
Trump, who also opposed the deal early on, appeared to soften his position during a meeting with Japanese Prime Minister Shigeru Ishiba in February. At the time, the president stated that Nippon would be making major investments in the United States regardless of the outcome.
Last month, the administration requested an extension of deadlines in the lawsuit brought by the companies against CFIUS, signaling ongoing merger negotiations. U.S. Steel and Nippon Steel have not commented on the new review order.
