President Donald Trump’s White House ordered a new review of the acquisition of U.S. Steel by Japan’s Nippon Steel after the deal was blocked by former President Joe Biden.
Trump directed the Committee on Foreign Investment in the United States to review the acquisition to assist “in determining whether further action in this matter may be appropriate,” according to a presidential action issued by the White House on Monday. U.S. Steel stock increased more than 16% in reaction to the decision.
Nippon Steel said that “an objective, fact-based review of our proposed partnership with U.S. Steel will show that it strengthens American economic and national security so that U.S. Steel remains a proud American company.”
U.S. Steel said, “We appreciate and commend President Donald Trump’s leadership. His action today validates our board’s bold decision to challenge President Biden’s unlawful order.”
The White House said the new CFIUS review will be conducted de novo, which means it won’t be bound by previous decisions.
A deal was struck between Nippon Steel and U.S. Steel in December 2023, after a monthslong bidding process by the Pittsburgh-based company. U.S. Steel shareholders approved the sale of the company a year ago, but the United Steelworkers union has opposed it.
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Both Trump and Biden have expressed opposition to the deal over the past year. In January, Biden blocked the $14.9 billion deal, saying it was a threat to supply chains to have one of the largest steel producers in the U.S. coming under foreign control.
However, Trump, since taking office, has encouraged Nippon Steel and U.S. Steel to restructure their deal so that the Japanese company will invest in the U.S. steelmaker without fully owning it.