April 7 (UPI) — President Donald Trump on Monday ordered a review of a proposed purchase of U.S. Steel by Nippon Steel.
In an executive order, Trump directed the Committee on Foreign Investment in the United States to “conduct a review of the acquisition of U.S. Steel by the purchasers to assist me in determining whether further action in this matter may be appropriate.”
Trump oeswews recommendation from CIFUS within 45 days “whether any measures proposed by the parties are sufficient to mitigate any national security risks.”
U.S. Steel stocks jumped as high as 11% Monday following the order.
Trump met with Japanese Prime Minister Shigeru Ishiba in February and said that he hoped Nippon Steel would instead invest in U.S. Steel, rather than acquire outright in a deal that former President Joe Biden blocked via executive order in January.
Biden said he stopped Nippon Steel’s $14.1 billion agreement to buy U.S. Steel due to national security concerns and threats to the domestic steel market.
“This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chain,” Biden said in a White House statement in January, “That is why I am taking action to block this deal.
Nippon Steel and U. S. Steel then both responded with lawsuits that alleged that Biden had “ignored the rule of law to gain favor with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union” and that due to his influence,” CIFUS had “failed to conduct a good faith, national security-focused regulatory review process, depriving Nippon Steel and U. S. Steel of their rightful opportunity for fair consideration of the transaction.”
