US President Donald Trump has ordered a fresh review of Nippon Steel’s bid for US Steel, raising hopes that the deal could gain approval. The move comes after the Biden administration blocked the deal on national security concerns.
Shares in both companies surged as investors saw this development as a positive sign. US Steel shares rose nearly 14%, while Nippon Steel shares jumped almost 10% in Tokyo morning trade.
Nippon Steel has expressed confidence that its proposed partnership with US Steel will strengthen American economic and national security. The company had been confident from the start of the process, and this latest move suggests a renewed interest in the deal.
The review is being conducted by the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign investments for national security risks. Nippon Steel and US Steel have previously sued CFIUS, alleging that the Biden administration had prejudiced their review.
However, the Trump administration has now asked an appeals court to pause their litigation until June 5 while CFIUS reviews the tie-up again. The companies hope that this development will lead to further action on their bid.
Industry Minister Muto Yoji declined to comment on whether Nippon Steel’s bid was discussed during a call between Trump and Japanese Prime Minister Shigeru Ishiba, who is seeking to reverse US tariffs on Japanese goods.
Source: https://www.reuters.com/markets/commodities/trump-orders-fresh-review-nippon-steels-bid-us-steel-statement-2025-04-07