Trump requests panel to review Nippon Steel’s purchase of U.S. Steel – Kyodo News
President Donald Trump has ordered a federal agency panel to review Nippon Steel Corp.’s blocked $14.1 billion bid to acquire United States Steel Corp. The purpose of this review is to help him decide if further actions should be taken. The Committee on Foreign Investment in the United States is tasked with submitting a recommendation to Trump within 45 days.
The aim of this review is to assess whether any measures proposed by the Japanese and U.S. steelmakers are adequate to mitigate national security risks previously identified. Trump wants a fresh review of the situation. The request was sent out to current committee members such as Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio.
Nippon Steel Vice Chairman Takahiro Mori had discussions with Lutnick last week. Mori pledged to boost the company’s investments in U.S. Steel properties. Following Trump’s announcement for a review, U.S. Steel shares surged in New York, at a time when global markets experienced significant declines and volatility due to concerns about Trump’s recent tariffs.
U.S. Steel expressed appreciation for Trump’s decision, deeming it pivotal for the company as they strive to deliver on new investment levels in American steel production. The company looks forward to working closely with Trump’s administration to finalize the investment deal, aiming to bolster national security and ensure a prosperous future for American manufacturing.
Nippon Steel welcomed the decision for a re-evaluation of their plan, hoping for a swift review process completion so they could initiate investment projects as planned. In January, President Biden blocked the sale of U.S. Steel to Nippon Steel on national security grounds. This move came after a recommendation by the Committee on Foreign Investment in the United States.
Before the Biden administration blocked the sale, U.S. Steel and its shareholders were in favor of the buyout, as they believed it would enhance their international competitiveness. Despite the roadblocks, both Nippon Steel and U.S. Steel remain committed to their merger plans and look forward to a resolution. Trump previously suggested that Nippon Steel acquire only a minority stake in U.S. Steel to avoid any issues.
During a joint press conference with Japanese Prime Minister Shigeru Ishiba, Trump mentioned that Nippon Steel would make significant investments in U.S. Steel instead of seeking complete ownership. Trump indicated that he preferred investment over a full buyout. He later expressed that his imposed tariffs on steel and aluminum imports aimed to boost American businesses like U.S. Steel.