A new directive by United States President Donald Trump to revisit Nippon Steel’s US$14.9 billion bid for US Steel has rejuvenated hopes of a green light for the acquisition.
The deal - blocked in January under the Biden administration on grounds of national security - will now be reassessed for its worth.
“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,” Trump said in a White House memo.
Having initially also opposing the deal, Trump looks to have softened his stance after a meeting with Japanese PM Shigeru Ishiba in February and amid fresh calls by the latter to negotiate over a 24% tariff to be imposed on the country in the coming days.
Japan’s Nippon Steel welcomed the news, saying "we have been confident from the outset that an objective, fact-based review of our proposed partnership with U.S. Steel will show that it strengthens American economic and national security”.
Likewise, U.S. Steel said it looks forward "to continuing to work closely with President Trump and his administration to finalise this significant and important investment”, as reported by Reuters.
The White House directive sent U.S. Steel shares rocketing up roughly 16% by close, as investors saw the reinvestigation as a positive sign the merger could go ahead.
