Trump Gives Nippon Steel Takeover of US Steel a Second Look
President Donald Trump on Monday launched a review of the proposed takeover of U.S. Steel by Japanese rival Nippon Steel, a merger previously blocked by Joe Biden on national security grounds.
"I direct the Committee on Foreign Investment in the United States (CFIUS) to conduct a review of the acquisition of US Steel by the Purchasers to assist me in determining whether further action in this matter may be appropriate," Trump said in a White House memo to his cabinet.
The revival of the previously blocked deal inspired hopes of the deal now closing, according to media reports, with shares of U.S. Steel (USS) closing up 16% Monday.
USS said in a statement to AFP that the move by Trump "validates our Board's bold decision to challenge President Biden's unlawful order."
"Today's decision by President Trump is pivotal as we work to deliver on new and historic levels of investment in American steelmaking," USS added.
David McCall, president of the United Steelworkers union, spoke out against Trump's move, saying in a statement: "Regardless of how much scrutiny the proposed USS-Nippon deal receives, it does not alter the urgent threat it poses to our national and economic security, the long-term future of the steel industry or our members' jobs."
Todd Tucker, director of industrial policy and trade at the Roosevelt Institute, said Biden's opposition to the merger stemmed from union concerns that the two companies would not invest enough to ensure the long-term sustainability of the U.S. steel industry.
"Unless the companies have dramatically revised their offer, and committed to greening the facilities for long-term competitiveness, they and the Trump administration should be worrying about whether they'll have the social license to operate," Tucker said.
CFIUS, tasked with analyzing the national security implications of foreign takeover of U.S. companies, has 45 days to submit its recommendations to Trump.
