President Donald Trump directed national security officials on Monday to reconsider Japanese steelmaker Nippon Steel‘s (TYO: 5401) bid for US Steel (NYSE: X), potentially reviving a deal blocked by his predecessor Joe Biden.
Trump instructed the Committee on Foreign Investment in the United States to submit a report within 45 days evaluating the proposed acquisition, according to a White House memorandum.
Biden halted the proposed acquisition in January following a yearlong review of the potential deal. His administration cited national security concerns, arguing the acquisition could place major American steel producers under foreign control.
Nippon Steel’s $55-per-share offer represents a significant premium over US Steel’s recent trading price, though the deal’s future remains uncertain.
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US Steel welcomed the review, stating, “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.”
Related: Nippon Steel Doubles Down on $14.1-B US Steel Pursuit
The review marks an apparent shift for Trump, who had previously stated on social media, “I am totally against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan.”
The Committee on Foreign Investment will assess whether the acquisition would create risks for national security and critical supply chains.
Trump’s directive requests the committee to help determine “whether further action in this matter may be appropriate.”
Information for this story was found via The Hill, Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
