President Trump has directed the Committee on Foreign Investment in the United States (CFIUS) to re-examine Nippon Steel’s acquisition proposal for US Steel. This directive raises hopes for a potential approval of the deal, which was previously blocked by former President Joe Biden on national security grounds.
Nippon Steel expressed satisfaction with the decision, stating confidence that their partnership with US Steel would enhance American economic and national security. US Steel also welcomed the move, affirming its commitment to working closely with the administration to finalize the investment.
Following the announcement, US Steel’s share price surged by 16%, reaching $44.50. Investors interpreted the directive as a positive signal that the Trump administration might approve the merger.
The companies had previously sued CFIUS, alleging that Biden influenced the committee’s decision to gain favor with the United Steelworkers union in Pennsylvania, a key swing state for re-election purposes.
— new from New York Post