US gives Nippon Steel bid a second look

WASHINGTON/TOKYO — US President Donald Trump on Monday directed a 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 that the deal could gain the elusive green light.

"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.

Shares in US Steel shot up nearly 14 percent as investors felt it meant the administration was considering approving the merger, which former president Joe Biden blocked in January on national security grounds.

Nippon Steel shares jumped almost 10 percent in Tokyo morning trade on Tuesday.

Nippon Steel said it was pleased by the news. "We have been confident from the outset that an objective, fact-based review of our proposed partnership with US Steel will show that it strengthens American economic and national security," it said.

A spokesperson for US Steel said the company looks forward "to continuing to work closely with President Trump and his administration to finalize this significant and important investment."

Muto Yoji, Japan's industry minister, declined to comment on Tuesday whether Nippon Steel's bid was discussed during Monday's call between Trump and Japanese Prime Minister Shigeru Ishiba, who is seeking to reverse US tariffs on Japanese goods.

"We believe that the relevant parties will continue to consider and coordinate this investment plan, and the government will endeavor to promote communication between the relevant parties as necessary," Muto told reporters.

After Biden's decision, the two companies sued CFIUS, which scrutinizes foreign investments for national security risks, alleging that Biden had prejudiced the committee's decision and violated the companies' right to a fair review.

They argued Biden did so in 2024 by expressing opposition to the deal when he was running for reelection — to win support from the United Steelworkers union in the swing state of Pennsylvania, where US Steel is headquartered. The Biden administration had defended the review as essential to protecting security, infrastructure and supply chains.

Last month, the Trump administration filed a motion to extend two deadlines in the lawsuit to give the government more time to wrap up merger talks with the firms.

Agencies via Xinhua